Insider Horizon and Disclosure Policies

• 成果类型: Article
• 署名作者: Cadman, Brian; Heinle, Mirko S.; Macciocchi, Daniele
• 署名单位: University of Pennsylvania; University of Miami
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/TAR-2019-0391
• 发表日期: 2023
• 页码: 55-88
• 关键词: voluntary disclosure; corporate governance; Financial disclosure; capital-markets; INFORMATION; earnings; cost; FIRMS; management; EFFICIENCY

摘要

We investigate the relationship between insider horizon and disclosure policy. First, we develop and analyze a rational expectations model assuming insiders are able to commit to a disclosure policy. Insiders with a short horizon prefer more disclosure and are willing to bear costs of disclosure to reduce information asymmetries among capital market participants. We then empirically test our predictions in the setting of newly public firms and firms where the CEO is approaching retirement. We find that firms with insiders that have a shorter horizon disclose more and experience lower information asymmetry. Our study contributes to the understanding of firms' disclosure choices by suggesting that the horizon of insiders shapes a firm's disclosure policy.