SEC Regulation Fair Disclosure, Information, and the Cost of Capital

By Armando Gomes, Gary B. Gorton, Leonardo Madureira. 2007

210 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/7179f861a9de396ba011ba53b6a1d9ab6e309f91

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Citations in the corpus

Global Accounting Convergence and the Potential Adoption of IFRS by the United States: An Analysis of Economic and Policy Factors (2009, background): “In fact, forcing firms to provide certain disclosures can have net costs to firms, especially smaller firms (e.g., Bushee and Leuz, 2005; Gomes and Gorton, 2007; Leuz et al., 2008b).”
Impact of Financial Literacy and Investment Experience on Risk Tolerance and Investment Decisions: Empirical Evidence from Pakistan (2016, background): “In fact, without being knowledgeable about how the users of financial reports consider risk, this will prove difficult for people managing and regulating to understand either risk related informationis working as expected or they operate in unexpected manner (Gomes et al., 2004).”
The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research (2015, background): “Similarly, there is evidence that firms increase earnings guidance after Reg FD, for example, to compensate the loss in analyst coverage (Heflin et al., 2003; Gomes et al., 2007; Anantharaman and Zhang, 2011).”
Corporate Governance and Firm Value: the Impact of the 2002 Governance Rules (2007, background): “Gomes, Gorton, and Madureira (2007) study the effect of the Fair Disclosure regulation on firms’ cost of capital and find that the rules result in reduced cost of capital in large firms but increased cost of capital in small firms.”
Shock-Based Causal Inference in Corporate Finance and Accounting Research (2015, unknown): “66Atanasov et al. (2010); Gomes et al. (2007).”
Information Asymmetry, Information Precision, and the Cost of Capital (2008, background): “For example, SEC Commissioner Unger (2000) voted against the proposed regulation because of concerns that it would “most likely reduce the amount of information available to investors...and the quality of the information that would be produced.””
Price Informativeness and Investment Sensitivity to Stock Price (2007, unknown): “For example, Gomes and Phillips (2004) showed that firms with lower earnings surprises are able to issue more information sensitive public securities; and Gomes, Gorton, and Madureira (2004) used earnings surprise to test whether Reg FD improves information transmission from the firm to the market.”
Economic Consequences of Financial Reporting and Disclosure Regulation: A Review and Suggestions for Future Research (2008, unknown): “Gomes et al. (2006) provide evidence that larger firms were able to compensate the loss in analyst coverage via other information channels but that small firms could not and as a result face a higher cost of capital.”
Analysts’ Forecasts and Asset Pricing: A Survey (2016, unknown): “Consistent with the argument that Reg FD increased the information acquisition costs for analysts, Gomes, Gorton, and Madureira (2007) document a decrease in the information environment (i.e., higher analysts’ forecast errors and higher volatility) for small firms, causing a higher cost of 31…”
Re-Examining the Effects of Regulation Fair Disclosure using Foreign Listed Firms to Control for Concurrent Shocks (2006, unknown): “2 dispersion, and a deterioration in the informativeness of analysts’ reports (see, for example, Heflin et al. [2002]; Agrawal and Chadha [2002]; Bailey et al.”