Differences in the information environment prior to seasoned equity offerings under relaxed disclosure regulation

Target information asymmetry and takeover strategy: Insights from a new perspective

“…SEC's intent, Shroff et al (2013) document a significant decrease in pre-offering information asymmetry following the Act's passage. Similarly, Clinton et al (2014) report more favorable stock returns leading up to the SEO issue date, which indicates a richer pre-SEO information environment. While the SOR applied specifically to SEOs, the prevalence of security issues and the market's close attention to these events may improve the information environment of the overall market after SOR.…”

“…To alleviate the endogeneity concern, we investigate the impact of information asymmetry around the 2005 passage of the Security Offering Reform (SOR) Act. Intended to enhance the amount and quality of information prior to a seasoned equity offering (SEO), SOR induced a rich pre‐SEO information environment (Clinton, While, & Woidtke, ; Shroff et al, ). As SEO is a frequent and closely monitored corporate decision, the information released during the issuance potentially improves the overall information environment in the market; hence, the passage of SOR provides a natural experiment to test the impact of an exogenous change in the information environment.…”

Optimal Disclosure and Litigation Rules Around IPOs and SEOs

“…The equity market consists of two kinds of investors: institutional investors, who have the ability to (and may choose to) make a noisy verification of the above disclosure by incurring a cost; and retail investors, who do not have the ability to make such a verification. 11 We assume that, depending on firm characteristics, only a fraction of the retail investors trading in a given equity market may choose to participate in a given equity issue ("retail investor participation rate" from now on). The price of the firm's equity is determined by the interaction between these two kinds of investors, and by the resulting incentives of corporate insiders to make (or not to make) various disclosures.…”

Financial Characteristic and Disclosure Delay of Annual Report: Evidence from Listed Companies in China

“…In abroad, many literatures suggests that the more timely of annual report disclosure, the more useful for investors' decision [3,5,15,18], the more untimely of annual report disclosure, poorer relevance for investors'decision [7,26,34]. At the same time, there are also some foreign literatures discussing the influencing factors of the annual report disclosure delay [2,3,19,23,28,42,43,54]. But most of these studies are based on the empirical evidence of the mature markets, the conclusion may not be applied to the emerging market countries.…”

“…But most of these studies are based on the empirical evidence of the mature markets, the conclusion may not be applied to the emerging market countries. There are some literatures discussing the annual report disclosure problem of listed companies in our country [19,37,50], but the analysis to influence factors of the annual report disclosure delay is not profounding, and neglecting the study of economic consequences caused by the annual report disclosure delay. So, basing on this emerging market in China, the paper investigates the relationship between the financial characters and disclosure of annual report systemly, and discusses the economic consequences resulting from the annual report disclosure delay, aiming to promote the exploring to the influence factors of the annual report disclosure delay of listed companies and economic consequences in China's regulators, academics and practice.…”