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Voluntary Disclosure and Firm Visibility: Evidence From Firms Pursuing an Initial Public Offering
| Content Provider | Scilit |
|---|---|
| Author | Dambra, Michael Schonberger, Bryce Wasley, Charles E. |
| Copyright Year | 2018 |
| Description | Journal: SSRN Electronic Journal Drawing on predictions by Merton (1987) regarding firms’ need to attract investor interest, we develop hypotheses for the role of pre-prospectus voluntary disclosure activities in terms of press releases and attendance at investor and industry conferences by firms pursuing an initial public offering (IPO). For a sample of IPOs during 2004–2014 we find that press release disclosures and conference attendance are common pre-IPO disclosure strategies. Tests using the passage of the 2005 Securities Offering Reform as a source of quasi-exogenous variation in pre-prospectus disclosures reveal, consistent with Merton (1987), that such disclosures are primarily designed to enhance firm visibility as opposed to being made to mitigate adverse selection costs. Overall, the evidence suggests that pre-IPO voluntary disclosure strategies provide benefits to newly public firms beyond mitigating informational asymmetries. |
| Related Links | http://scholarspace.manoa.hawaii.edu/bitstream/10125/59272/1/HARC_2019_paper_62.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=3213482 |
| ISSN | 10914358 |
| e-ISSN | 15565068 |
| DOI | 10.2139/ssrn.3213482 |
| Journal | SSRN Electronic Journal |
| Language | English |
| Publisher | Elsevier BV |
| Publisher Date | 2018-07-13 |
| Access Restriction | Open |
| Subject Keyword | Journal: SSRN Electronic Journal Voluntary Disclosure Investor Conferences |
| Content Type | Text |
| Resource Type | Article |
| Subject | Public Health, Environmental and Occupational Health Psychiatry and Mental Health |
