 Redacted disclosure and analysts’ weighting of informationLei Zhao Journal of Contemporary Accounting and Economics, 2025, vol. 21, issue 2 Abstract: This paper investigates whether and how redacting value-relevant proprietary information from material agreements in initial public offerings (IPO) affects financial analysts’ weighting of private and public information. To the extent that redaction affects the firm information environment, I find that analysts place greater weight on private information for redacting IPO firms. This result prevails particularly among analysts who rely more on private information. Further evidence reveals that analysts’ increased reliance on private information stems from cognitive biases and incentives. Moreover, I ascertain that analysts’ heightened emphasis on private information increases idiosyncratic risk. These findings shed light on the role of firm information environment in analysts’ decision-making processes, which is of potential interest to regulators seeking to understand the consequences of redacting proprietary information in IPO filings. Keywords: Redacted disclosure; Analysts’ behavior; Initial public offerings (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jocaae:v:21:y:2025:i:2:s1815566925000189 DOI: 10.1016/j.jcae.2025.100471 Access Statistics for this article Journal of Contemporary Accounting and Economics is currently edited by Agnes C.S. Cheng, P. Clarkson, F.A. Gul, Zoltan Matolcsy, Dan Simunic and Ben Srinidhi More articles in Journal of Contemporary Accounting and Economics from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.