Institutional Investor Attention and Firm Disclosure

Inna Abramova, John Core and Andrew Sutherland

MPRA Paper from University Library of Munich, Germany

Abstract: We study how short-term changes in institutional owner attention affect managers’ short-term disclosure choices. Holding institutional ownership constant and controlling for industry-quarter effects, we find that managers respond to attention by increasing the number of forecasts and 8-K filings. Rather than alter the decision of whether to forecast or to provide more informative disclosures, attention causes minor disclosure adjustments. Although attention explains significant variation in the quantity of disclosure, we find little change in abnormal volume and volatility, the bid-ask spread, or depth. Overall, our evidence suggests that management responds to temporary institutional investor attention by making disclosures that have little effect on information quality or liquidity.

Keywords: disclosure; management forecasts; 8-K filings; information quality; liquidity; institutional ownership; passive investors; corporate governance; monitoring (search for similar items in EconPapers)
JEL-codes: G1 G12 G14 G23 G32 G34 (search for similar items in EconPapers)
Date: 2019-04-11
New Economics Papers: this item is included in nep-bec, nep-cfn and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:93665

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