MIT Libraries logoDSpace@MIT

MIT
View Item 
  • DSpace@MIT Home
  • MIT Open Access Articles
  • MIT Open Access Articles
  • View Item
  • DSpace@MIT Home
  • MIT Open Access Articles
  • MIT Open Access Articles
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Voluntary Disclosure and Information Asymmetry: Evidence from the 2005 Securities Offering Reform

Author(s)
SHROFF, NEMIT; SUN, AMY X.; WHITE, HAL D.; ZHANG, WEINING; Shroff, Nemit
Thumbnail
DownloadSSRN-id1846123.pdf (384.3Kb)
OPEN_ACCESS_POLICY

Open Access Policy

Creative Commons Attribution-Noncommercial-Share Alike

Terms of use
Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/
Metadata
Show full item record
Abstract
In 2005, the Securities and Exchange Commission enacted the Securities Offering Reform (Reform), which relaxes “gun-jumping” restrictions, thereby allowing firms to more freely disclose information before equity offerings. We examine the effect of the Reform on voluntary disclosure behavior before equity offerings and the associated economic consequences. We find that firms provide significantly more preoffering disclosures after the Reform. Further, we find that these preoffering disclosures are associated with a decrease in information asymmetry and a reduction in the cost of raising equity capital. Our findings not only inform the debate on the market effect of the Reform, but also speak to the literature on the relation between voluntary disclosure and information asymmetry by examining the effect of quasi-exogenous changes in voluntary disclosure on information asymmetry, and thus a firm's cost of capital.
Date issued
2013-12
URI
http://hdl.handle.net/1721.1/88131
Department
Sloan School of Management
Journal
Journal of Accounting Research
Publisher
Wiley Blackwell
Citation
SHROFF, NEMIT, AMY X. SUN, HAL D. WHITE, and WEINING ZHANG. “Voluntary Disclosure and Information Asymmetry: Evidence from the 2005 Securities Offering Reform.” Journal of Accounting Research 51, no. 5 (December 2013): 1299–1345.
Version: Author's final manuscript
ISSN
00218456
1475-679X

Collections
  • MIT Open Access Articles

Browse

All of DSpaceCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

My Account

Login

Statistics

OA StatisticsStatistics by CountryStatistics by Department
MIT Libraries
PrivacyPermissionsAccessibilityContact us
MIT
Content created by the MIT Libraries, CC BY-NC unless otherwise noted. Notify us about copyright concerns.