Limited Attention, Information Disclosure, and Financial Reporting

By David A. Hirshleifer, Siew Hong Teoh. 2003

2,067 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/909140adb4321d72d0cf7435e6e9403654fb553c

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Citations in the corpus

Non-GAAP earnings and board independence (2011, neutral): “Both Yi (2007) and Kolev et al. (2008) find that the quality of non-GAAP exclusions improves after Regulation G.”
The benefits of specific risk-factor disclosures (2016, positive): “…that information that is more costly to extract from financial reports is less completely incorporated in market prices (Ball 1992; Bloomfield 2002; Hirshleifer and Teoh 2003: Bonsall et al. 2015).7 Less precise information is likely more difficult for investors to extract, process, evaluate, and…”
Retail investor attention and stock price crash risk: Evidence from China (2019, background): “Even with ample and accessible information, most of them may still be unsure how the information might shape the future (Nofsinger, 2001a; Hirshleifer and Teoh, 2003; Peng and Xiong, 2006).”
Learning with Information Capacity Constraints (2005, background): “Hirshleifer and Teoh (2003) and Hirshleifer, Lim, and Teoh (2002) study firms’ disclosure policies when investors have limited attention.”
Open source information, investor attention, and asset pricing (2013, background): “Based on the theoretical models (Hirshleifer and Teoh, 2003; Merton, 1987; Sims, 2003) of investor attention, different kinds of indirect proxies, including advertising (Chemmanur and Yan, 2009; Grullon et al., 2004), media coverage (Chan, 2003; Fang and Peress, 2009), excessive trading volume and…”
Investor Inattention and Friday Earnings Announcements (2009, background): “While managers cannot manipulate the signal itself as in Hirshleifer and Teoh (2003), they choose to announce the signal when either a high fraction or a low fraction of investors is distracted.”
Determinants and Economic Consequences of Non-financial Disclosure Quality (2016, positive): “…a weaker or even insigniﬁcant effect on the capital market due to constraints such as investors’ limited attention and information processing capacity, both of which are less bounding when it comes to attention-attracting events such as CSR report initiation/issuance (Hirshleifer & Teoh, 2003).”
Do key audit matters impact financial reporting behavior? (2020, positive): “These findings are consistent with information-processing research suggesting that individuals make trade-offs when processing information and, hence, are often unlikely to encode information that does not draw their attention or that requires significant processing (Hirshleifer & Teoh, 2003).”
The Disclosure of Non-GAAP Earnings Information in the Presence of Transitory Gains (2014, positive): “Hirshleifer and Teoh (2003) posit that “owing to limits to investor attention, information that is presented in salient, easily processed form is assumed to be absorbed more easily than information that is less salient, or that is only implicit in the public information set” (2003, 339).”
A theory of voluntary disclosure and cost of capital (2013, result): “Building on the firm-level result, in contrast to existing literature, I show that greater information availability in the economy increases the average cost of capital because more information increases the dispersion of prices post disclosure; this itself leads, as noted by Hirshleifer (1971), to ”
Economic Links and Predictable Returns (2008, background): “Hirshleifer and Teoh (2003) and Peng and Xiong (2006) also model investor inattention and derive empirical implications for security prices. Hirshleifer and Teoh (2003) focus on the presentation of firm information in accounting reports and the effect on prices and misvaluation.”
Investor Attention and Stock Returns (2020, neutral): “…past returns (Aboody et al. (2010)), nearness to the Dow 52-week high and nearness to the Dow historical high (Li andYu (2012)), analyst coverage (Hirshleifer and Teoh (2003), Peng (2005), and Hirshleifer et al. (2013)), changes in advertising expenses (Lou (2014)); media coverage (Barber and…”