Business Intelligence

Does Web Disclosure Matter?

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Executive Summary

The purpose of this paper to examine the way in which corporate website disclosures complement or substitute for firm-specific information provided by other sources- and how they affect the stock price response to quarterly earnings announcements. Companies that provide easier access to their investor relations group and higher levels of trading (stock-market-related) information on their websites have lower analyst coverage and more small investors. Companies that provide more financial disclosures and access to webcasts, on the other hand, have relatively greater analyst coverage and more institutional ownership. Companies with high litigation risk provide more financial disclosures but not more investor relations and trading information.

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