Levels of voluntary disclosure in IPO prospectuses: an empirical analysis

Anne Jeny and Thomas Jeanjean

No DR 06001, ESSEC Working Papers from ESSEC Research Center, ESSEC Business School

Abstract: This paper focuses on how forecasts information is disclosed in IPO prospectuses. In France, managers report either detailed forecasts or only a brief summary. We investigate the determinants and consequences of the varying levels of detail provided in these forecasts. Based on a sample of 82 IPOs on the Euronext Paris market (2000-2002), we show that only two variables are associated with highly detailed forecast disclosures: forecast horizon and firm age. We also find that the forecast error decreases as the level of detail in the forecast disclosures increases. This finding is robust to our reverse causality test (Heckman two-stage self-selection procedure) and suggests that the level of detail in forecast disclosures enhances the reliability of earnings forecasts.

Keywords: IPO; Forecast disclosure; forecast error (search for similar items in EconPapers)
JEL-codes: G14 G34 M41 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2006-01
New Economics Papers: this item is included in nep-fin, nep-fmk and nep-for
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.essec.fr/pwr/servlet/showRef?bibID=633 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.essec.fr/pwr/servlet/showRef?bibID=633 [301 Moved Permanently]--> https://www.essec.edu/fr/pwr/servlet/showRef?bibID=633 [308 Permanent Redirect]--> https://www.essec.edu/fr/pwr/servlet/showRef/?bibID=633)

Related works:
Journal Article: Levels of voluntary disclosure in IPO prospectuses: an empirical analysis (2007)
Working Paper: Levels of voluntary disclosure in IPO prospectuses: An empirical analysis (2007)
Working Paper: Levels of voluntary disclosure in IPO prospectuses: an empirical analysis (2005)
Working Paper: Levels of voluntary disclosure in IPO prospectuses: An empirical analysis (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebg:essewp:dr-06001

Access Statistics for this paper

More papers in ESSEC Working Papers from ESSEC Research Center, ESSEC Business School ESSEC Research Center, BP 105, 95021 Cergy, France. Contact information at EDIRC.
Bibliographic data for series maintained by Sophie Magnanou ().