The Information Externality of Public Firms' Financial Information in the State-Bond Secondary Market
成果类型：
Article
署名作者：
Cheng, Stephanie F.
署名单位：
Tulane University
刊物名称：
JOURNAL OF ACCOUNTING RESEARCH
ISSN/ISSBN：
0021-8456
DOI：
10.1111/1475-679X.12361
发表日期：
2021
页码：
529-574
关键词：
摘要：
This study provides evidence on the role of public firms' financial reports in the state-bond secondary market. I investigate the informational role of corporate earnings announcements and find that public firms' monthly earnings signals aggregated to the state level are positively associated with contemporaneous state-bond returns. Further analyses reveal that public firms' earnings announcements predict traditional economic indicators and contain incremental information that is independent of the traditional economic indicators. In cross-sectional analyses, I show that the earnings-returns relation is especially pronounced when bondholders face longer investment horizons and higher credit risks. Taken together, the evidence indicates a positive externality of corporate financial reports in alleviating the opacity in the municipal bond secondary market.
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