Isolating the effect of disclosure on information risk

• 成果类型: Article
• 署名作者: Tang, Vicki Wei
• 署名单位: Georgetown University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2011.03.001
• 发表日期: 2011
• 关键词: accounting information; earnings management; cost; environment; incentives; asymmetry; LEVEL

摘要

This study examines companies with two classes of shares that entitle their holders to identical cash flow and voting rights but that are available to mutually exclusive sets of investors: A shares to domestic investors and B shares to foreign investors. Price differences between A and B shares are higher in firms with a greater disparity in the disclosures that they make to domestic and foreign investors. This association is more pronounced when the cost (benefit) of information transfer is higher (lower). The results suggest that disclosure disparity creates meaningful differences in investors' average information precision across A and B shares and thus influences the cross-sectional variation in price differences. (C) 2011 Elsevier B.V. All rights reserved.