Document Type
Article
Publication Date
5-2007
Publisher
Elsevier B.V.
Abstract
We examine the relation between disclosure frequency and earnings management,and the impact of this relation on post-issue performance, for a sample of seasoned equityofferings (SEOs). We contend that firms with extensive disclosure are less likely to faceinformation problems, leading to less earnings management and better post-issueperformance. Our results confirm that disclosure frequency is inversely related toearnings management and positively associated with post-issue performance. We alsofind that transparency-reducing disclosure is concentrated in firms that substantially, buttemporarily, increase disclosure prior to the offering. Such firms exhibit more earningsmanagement and poorer post-SEO stock performance, on average.JEL classification:G14; G24; G32; M41
Recommended Citation
Jo, H., and Y. Kim. "Disclosure Frequency and Earnings Management." Journal of Financial Economics 84.2 (2007): 561-90.
Comments
NOTICE: this is the author's version of a work that was accepted for publication in Journal of Financial Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Financial Economics, Vol. 84, no. 2, (2007).
doi:10.1016/j.jfineco.2006.03.007