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Corporate Disclosure, Market Valuation, and Firm Performance


  • Yawen Jiao

    1. Yawen Jiao is an Assistant Professor of Finance in the Lally School of Management and Technology at the Rensselaer Polytechnic Institute, Troy, NY.
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  • I thank Bill Francis, Iftekhar Hasan, and in particular an anonymous referee for helpful comments. I gratefully acknowledge the able research assistance of Brian Clark. All remaining errors are my own.


In this paper, I study the relationship between the Association for Investment Management and Research disclosure rankings and several corporate performance measures. I find a positive relationship between these rankings and stock returns. Furthermore, disclosure rankings are highly correlated with firm value. Specifically, Qs of firms ranked at the top of disclosure rankings are 35% higher than those of firms ranked at the bottom. I also find positive associations between disclosure rankings and future net profit margins, sales growth, and research and development intensity. Finally, I document a positive correlation between changes in disclosure rankings and future earnings surprises.