Cross-sectional and time-series tests show that information asymmetry is negatively associated with conference call activity.

Conference call and information asymmetry. Audit opinions and information asymmetry in the stock market Accounting and Finance Accounting and Finance Association of Australia and New Zealand vol. As a result greater disclosure induces more investing by uninformed liquidity traders. That disclosure reduces information asymmetry through two channels.

Asymmetric information costs due to Regulation FD can be isolated. Full text of Conference calls information asymmetry and governance structure See other formats. Firms initiating a policy of regularly holding conference calls experience statistically and economically significant and sustained reductions in information asymmetry in contrast to one-time callers who experience no significant decline in asymmetry.

Ix 127 leaves. We hypothesize that conference calls are voluntary disclosures that lead to long-term reductions in information asymmetry among equity investors. Vlittis Adamos Publication Date.

Academic conferences jstor Analytical forecasting jstor. Conference call activity is negatively associated with the level of information asymmetry. Conference calls also reduce information asymmetry by reducing the relative amount of informed trading in the equity markets.

Section III presents measures of trading costs and information asymmetry while Section IV. Our ability to reject the null hypothesis of no association is made more difficult by the potentially endogenous relationship between disclosure and information asymmetry. We hypothesize that conference calls are voluntary disclosures that lead to long-term reductions in information asymmetry among equity investors.

1999 and Bushee et al. 2003 find evidence consistent with conference calls leading to a temporary increase in information-based trading during the immediate call period. Conference calls information asymmetry and governance structure Creator.