Individual investors and financial disclosure
AbstractUsing 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.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Accounting and Economics.
Volume (Year): 56 (2013)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/jae
Individual investors; Financial disclosure; Individual characteristics; Information disadvantage;
Find related papers by JEL classification:
- D10 - Microeconomics - - Household Behavior - - - General
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
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