2026-09-19T22:33:29Zhttps://dspace.mit.edu/server/oai/requestoai:dspace.mit.edu:1721.1/822772022-01-13T07:54:52Zcom_1721.1_7582com_1721.1_7581col_1721.1_131022
John Core and Ross Watts.
Zuo, Luo, Ph. D. Massachusetts Institute of Technology
Sloan School of Management.
Sloan School of Management
2013-11-18T19:03:10Z
2013-11-18T19:03:10Z
2013
2013
http://hdl.handle.net/1721.1/82277
861189893
Thesis (Ph. D.)--Massachusetts Institute of Technology, Sloan School of Management, 2013.
Cataloged from PDF version of thesis.
Includes bibliographical references (p. 43-45).
This paper studies whether managers use investor information they learn from the stock market when making forward-looking disclosures. Using annual management earnings forecasts from 1996 to 2010, I find that the association between forecast revisions and stock price changes over the revision periods is stronger when there is more informed trading. Further, the effect of investor information on the revision-return relation remains after controlling for various sources of managerial and public information, and is more pronounced when the information is more relevant to predicted earnings. In addition, more investor information contained in stock prices leads to a greater improvement in forecast accuracy but a weaker market reaction to the subsequent forecast announcement. My study highlights the two-way information flows between firms and capital markets and has implications for the real effects of financial markets.
by Luo Zuo.
Ph.D.
59 p.
eng
Massachusetts Institute of Technology
M.I.T. theses are protected by
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http://dspace.mit.edu/handle/1721.1/7582
Sloan School of Management.
The informational feedback effect of stock prices on corporate disclosure
Thesis
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<Abstract>This paper studies whether managers use investor information they learn from the stock market when making forward-looking disclosures. Using annual management earnings forecasts from 1996 to 2010, I find that the association between forecast revisions and stock price changes over the revision periods is stronger when there is more informed trading. Further, the effect of investor information on the revision-return relation remains after controlling for various sources of managerial and public information, and is more pronounced when the information is more relevant to predicted earnings. In addition, more investor information contained in stock prices leads to a greater improvement in forecast accuracy but a weaker market reaction to the subsequent forecast announcement. My study highlights the two-way information flows between firms and capital markets and has implications for the real effects of financial markets.</Abstract>
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