Boston University Libraries OpenBU
    JavaScript is disabled for your browser. Some features of this site may not work without it.
    View Item 
    •   OpenBU
    • Theses & Dissertations
    • Boston University Theses & Dissertations
    • View Item
    •   OpenBU
    • Theses & Dissertations
    • Boston University Theses & Dissertations
    • View Item

    Nondisclosure and analyst behavior: evidence from redaction of proprietary information from public filings

    Thumbnail
    Date Issued
    2019
    Author(s)
    Fei, Xingyuan
    Share to FacebookShare to TwitterShare by Email
    Export Citation
    Download to BibTex
    Download to EndNote/RefMan (RIS)
    Metadata
    Show full item record
    Permanent Link
    https://hdl.handle.net/2144/37990
    Abstract
    This study explores how the redaction of proprietary information from public filings is related to analyst following and properties of analysts’ earnings forecasts. The paper uses hand-collected data on firms’ confidential treatment orders from the SEC EDGAR database to identify firms that withhold information (redacting firms), which are benchmarked to a matched set of firms that do not (non-redacting firms). Relative to non-redacting firms, the paper predicts and documents that redacting firms have (i) higher analyst following; (ii) more dispersed and less accurate analysts’ earnings forecasts; and (iii) lower precision of both public and private information contained in analysts’ earnings forecasts. Additional analyses reveal that analysts covering redacting firms trade off accuracy for timeliness when issuing earnings forecasts, that the market reaction to analyst reports is higher for redacting firms, and that for redacting firms investors place higher weight on information from analysts relative to that from the firm itself. Overall, the findings suggest that firms engaging in redacted disclosure exhibit greater investor demand for analyst outputs, a deterioration in the analysts’ information environment, but also greater investor reliance on analyst outputs.
    Collections
    • Boston University Theses & Dissertations [7812]


    Boston University
    Contact Us | Send Feedback | Help
     

     

    Browse

    All of OpenBUCommunities & CollectionsIssue DateAuthorsTitlesSubjectsThis CollectionIssue DateAuthorsTitlesSubjects

    Deposit Materials

    LoginNon-BU Registration

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular Authors

    Boston University
    Contact Us | Send Feedback | Help