The Real Effects of Modern Information Technologies: Evidence from the EDGAR Implementation

• 成果类型: Article
• 署名作者: Goldstein, Itay; Yang, Shijie; Zuo, Luo
• 署名单位: University of Pennsylvania; Southern University of Science & Technology; National University of Singapore; Cornell University
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/1475-679X.12496
• 发表日期: 2023
• 页码: 1699-1733
• 关键词: stock-prices; INVESTMENT SENSITIVITY; social value; MARKET; disclosure; FIRMS; PRIVATE; cost; ask

摘要

Using the implementation of the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system from 1993 to 1996 as a shock to information dissemination technologies, we examine how a significant reduction in disclosure processing costs affects the real economy. We find that the EDGAR implementation leads to an increase in corporate investment and that this effect is concentrated in value firms. We provide evidence that improved equity financing and enhanced managerial incentives are likely the underlying mechanisms. Specifically, the EDGAR implementation leads to an increase in a firm's stock liquidity, a decrease in the cost of equity capital, and an increase in the level of equity financing. Consistent with the monitoring effect of broad information dissemination, the EDGAR implementation leads to an increase in a firm's operating performance. Our findings suggest that it is important to consider information dissemination beyond information production when examining the real effects of corporate disclosures.