Limited attention, information disclosure, and financial reporting
Article Abstract:
The firms' choices between alternative means of presenting information and the effects of different presentations on market prices when investors have limited attention ad processing power. In a market equilibrium with partially attentive investors, the effects of alternative levels of discretion in pro forma earnings disclosure, methods of accounting for employee option compensating, and degrees of aggregation in reporting are examined.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 2003
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Characteristics of a firm's information environment and the information asymmetry between insiders and outsiders
Article Abstract:
The relation between the key characteristics of a firm's information environment and information asymmetry between managers and investors are investigated. The results suggest that increased analyst following is associated with reduced profitability of insider trades and reduced insider purchases and the company news is positively associated with insider purchase frequency.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 2004
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Discussion of limited attention information disclosure, and financial reporting
Article Abstract:
Hirshleifer and Teoh's modeling and analysis of 'inattentive investors', stock price valuation and accounting recognition rules and disclosures is discussed. Many plausible empirical predictions from an equilibrium model in which some investors do not process information 'fully' or correctly.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 2003
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