Individual investors and financial disclosure
Journal
Journal of Accounting and Economics
Subject
Accounting
Publishing details
Authors / Editors
Lawrence A
Biographies
Publication Year
2013
Abstract
Using detailed data of individual investors, this study shows that, on average, individuals invest more in firms with clear and concise financial disclosures. The results indicate this relation is less pronounced for high frequency trading and financially-literate individuals. The study also shows that individuals' returns are increasing with clearer and more concise disclosures, implying such disclosures reduce individuals' relative information disadvantage. Together, the findings suggest improved corporate disclosure practices benefit individual investors, in particular buy-and-hold investors.
Keywords
Individual investors; Financial disclosure; Individual characteristics; Information disadvantage
Available on ECCH
No