We examine how banks have complied with the Financial Accounting Standards Board's disclosure rules on Level 3 recurring fair value measurements. We document widespread noncompliance with the basic disclosure requirements. We also find that the noncompliant banks are smaller in size and are associated with lower audit quality, lower institutional ownership and less effective internal controls. Our results should be of use to regulators, auditors and audit committees in the United States, Australia and other countries for assessing the likelihood of noncompliance with fair value disclosure rules and improving the quality of fair value disclosures provided to investors.

The use of social networking web sites by companies to disclose corporate news and by investors to collect information for investment purposes is increasing rapidly. However, the influence of Facebook, the largest social networking web site, on investors' judgments is under-researched. We conduct an experiment to examine how the disclosure platform (disclosing news on a company's Facebook web page or the corporate investor relations web page) and news valence (positive or negative) jointly influence investors' affective reactions to corporate news and stock price change judgments. Results show that the disclosure platform influences investors' affective reactions and stock price change judgments when the corporate news is negative, but not when the corporate news is positive. In addition, investors' affective reactions mediate the influence of the disclosure platform on investors' stock price change judgments when the corporate news is negative rather than positive. Our theory and findings are timely and important for researchers, investors, and firms given the increasing use of Facebook and other social networking web sites as venues for disclosing corporate news.

We examine whether and how investor sentiment affects analysts’ private information production and the factors that moderate this influence. As expected, analysts’ private information production (measured by the information asymmetry component of analyst forecast dispersion) is significantly negatively associated with investor sentiment. Our tests also show that higher institutional holdings of stock, longer analysts’ earnings forecasting experience, and higher levels of short selling of stock mitigate this negative influence of sentiment on analysts’ private information production. Our findings are informative for researchers, financial analysts, and market participants who rely on analysts’ forecasts to form earnings expectations.

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