We would like to thank Jayant R. Kale (the editor) and an anonymous referee for comments that helped improve the article substantially.
DOES IT PAY TO DISCLOSE MANAGERIAL EARNINGS INFORMATION EARLY?
Article first published online: 16 JUN 2011
© 2011 The Southern Finance Association and the Southwestern Finance Association
Journal of Financial Research
Volume 34, Issue 2, pages 365–386, Summer 2011
How to Cite
Gelles, G., Howe, J. S. and Xing, X. (2011), DOES IT PAY TO DISCLOSE MANAGERIAL EARNINGS INFORMATION EARLY?. Journal of Financial Research, 34: 365–386. doi: 10.1111/j.1475-6803.2011.01294.x
- Issue published online: 16 JUN 2011
- Article first published online: 16 JUN 2011
Does it pay to voluntarily disclose the manager's private information about the firm's earnings prospects before the mandatory announcement date? This question has been a subject of much debate because prior research establishes both benefits and costs of early information disclosure. We provide evidence on the net effect of such disclosure by examining its impact on firm value. Using a large sample and correcting for self-selection bias, we find that early disclosure of the manager's private earnings information enhances the end-of-period value of the firm.