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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/31614
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| Title: | Shaping Liquidity: On the Casual Effects of Voluntary Disclosure |
| Authors: | Balakrishnan, Karthik
Billings, Mary
Kelly, Bryan
Ljungqvist, Alexander |
| Issue Date: | 19-Sep-2012 |
| Series/Report no.: | FIN-12-010 |
| Abstract: | Can managers influence the liquidity of their shares? We use plausibly
exogenous variation in the supply of public information to show that
firms seek to actively shape their information environments by
voluntarily disclosing more information than is mandated by market
regulations and that such efforts have a sizeable and beneficial effect
on liquidity. Firms respond to an exogenous loss of public information
by providing more timely and informative earnings guidance. Responses
are greatest when firms lose local information producers and appear
motivated by a desire to communicate with retail investors. Liquidity
improves as a result of voluntary disclosure. |
| URI: | http://hdl.handle.net/2451/31614 |
| Appears in Collections: | Finance Working Papers
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