Institutional Investor Attention and Firm Disclosure

Abramova, I, Core, J E and Sutherland, A (2020) Institutional Investor Attention and Firm Disclosure. Accounting Review, 95 (6). pp. 1-21. ISSN 0001-4826

Abstract

We study how short-term changes in institutional owner attention affect managers' disclosure choices. Holding institutional ownership constant and controlling for industry-quarter effects, we find that managers respond to attention by increasing the number of forecasts and 8-K filings. Rather than alter the decision of whether to forecast or to provide more informative disclosures, attention causes minor disclosure adjustments. This variation in disclosure is primarily driven by passive investors. Although attention explains significant variation in the quantity of disclosure, we find little change in abnormal volume and volatility, the bid-ask spread, or depth. Overall, our evidence suggests that management responds to temporary institutional investor attention by making disclosures that have little effect on information quality or liquidity.

More Details

Item Type: Article
Subject Areas: Accounting
Additional Information:

© 2020 American Accounting Association

Date Deposited: 08 Oct 2020 09:35
Subjects: Disclosure of financial information
Last Modified: 16 Oct 2024 00:50
URI: https://lbsresearch.london.edu/id/eprint/1500
More

Export and Share


Download

Full text not available from this repository.

Statistics

Altmetrics
View details on Dimensions' website

Downloads from LBS Research Online

View details

Actions (login required)

Edit Item Edit Item