Limited attention, information disclosure, and financial reporting

• 成果类型: Review
• 署名作者: Hirshleifer, D; Teoh, SH
• 署名单位: University System of Ohio; Ohio State University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2003.10.002
• 发表日期: 2003
• 关键词: MARKET-EFFICIENCY; INVESTOR PSYCHOLOGY; capital-markets; corporate focus; VALUE-RELEVANCE; earnings; price; valuation; MODEL; RISK

摘要

This paper models firms' choices between alternative means of presenting information, and the effects of different presentations on market prices when investors have limited attention and processing power. In a market equilibrium with partially attentive investors, we examine the effects of alternative: levels of discretion in pro forma earnings disclosure, methods of accounting for employee option compensation, and degrees of aggregation in reporting. We derive empirical implications relating pro forma adjustments, option compensation, the growth, persistence, and informativeness of earnings, short-run managerial incentives, and other firm characteristics to stock price reactions, misvaluation, long-run abnormal returns, and corporate decisions. (C) 2003 Elsevier B.V. All rights reserved.