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Conference call and information asymmetry. 11 11 Frankel et al. Conference calls information asymmetry and governance structure Creator. Subjects Subjects Keywords.

Asymmetric information costs due to Regulation FD can be isolated. This asymmetry creates an imbalance of power in transactions which can sometimes cause the transactions to be inefficient causing market failure in the worst case. We hypothesize that conference calls are voluntary disclosures that lead to long-term reductions in information asymmetry among equity investors.

Merton 1987 and Fishman and Hagerty 1989 describe models in which more informative disclosures reduce the costs associated with processing and assimilating public information. That disclosure reduces information asymmetry through two channels. The analysis focuses on the pricing efficiency of the soft information in earnings conference calls and the variation of firms ESG scores.

Specific examples of such selective disclosure are summarized in. Cross-sectional and time-series tests show that information asymmetry is negatively associated with conference call activity. Request PDF On Jan 1 2003 Stephen Brown and others published Conference Calls and Information Asymmetry Find read and cite all the research you need on ResearchGate.

Cross-sectional and time-series tests show that the level of information asymmetry is negatively associated with conference call activity. Abstract We hypothesize that conference calls are voluntary disclosures that lead to long-term reductions in information asymmetry among equity investors. We hypothesize that conference calls are voluntary disclosures that lead to long-term.

Our ability to reject the null hypothesis of no association is made more difficult by the potentially endogenous relationship between disclosure and information asymmetry. ESG scores and the information asymmetry between the market and firm management. In particular firms that initiate a policy of regularly holding conference calls on average experience a statistically and economically significant 120th reduction in information asymmetry and this reduction is sustained over the long-term.