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Bridging the Information Gap: Quarterly Conference Calls as a Medium for Voluntary Disclosure

Bridging the Information Gap: Quarterly Conference Calls as a Medium for Voluntary Disclosure This paper uses the quarterly conference call as a disclosure metric to examine whether firms with less informative financial statements are more likely to respond by providing additional voluntary disclosure. After controlling for other characteristics of a firm's information environment, I find a significant inverse relation between measures of the informativeness of a firm's financial statements and the likelihood that the firm will use a quarterly conference call. This finding is consistent with the hypothesis in Verrecchia (1990) that the probability of disclosure of management's private information is negatively related to the precision of prior public information on firm value. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Accounting Studies Springer Journals

Bridging the Information Gap: Quarterly Conference Calls as a Medium for Voluntary Disclosure

Tasker, Sarah
Review of Accounting Studies , Volume 3 (2) – Oct 6, 2004
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References (26)

Publisher
Springer Journals
Copyright
Copyright © 1998 by Kluwer Academic Publishers
Subject
Business and Management; Accounting/Auditing; Corporate Finance; Public Finance
ISSN
1380-6653
eISSN
1573-7136
DOI
10.1023/A:1009684502135
Publisher site
See Article on Publisher Site

Abstract

This paper uses the quarterly conference call as a disclosure metric to examine whether firms with less informative financial statements are more likely to respond by providing additional voluntary disclosure. After controlling for other characteristics of a firm's information environment, I find a significant inverse relation between measures of the informativeness of a firm's financial statements and the likelihood that the firm will use a quarterly conference call. This finding is consistent with the hypothesis in Verrecchia (1990) that the probability of disclosure of management's private information is negatively related to the precision of prior public information on firm value.

Journal

Review of Accounting Studies – Springer Journals

Published: Oct 6, 2004

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