Journal article
LAW, SHARE PRICE ACCURACY, AND ECONOMIC PERFORMANCE: THE NEW EVIDENCE
Michigan law review, Vol.102(3), pp.331-386
12/01/2003
DOI: 10.2307/3595365
Abstract
A central feature of debates concerning corporate and securities law reform across the world - the US, other developed economies, and emerging economies alike - concerns the value of mandatory disclosure. Two big questions occupy much of the attention. Does the accuracy of equity prices really matter to an economy and, even if it does, will mandatory disclosure effectively contribute to share price accuracy? The debate concerning these questions has been largely at the level of theory. This article attempts to shed some empirical light on the matter using the new R2 methodology. Given the dearth of useful empirical study of these questions, the findings reported here - that share price accuracy appears to enhance the efficiency with which capital is allocated and that the management discussion and analysis disclosure requirements adopted by the SEC in late 1980 increased share price accuracy - have real importance.
Details
- Title: Subtitle
- LAW, SHARE PRICE ACCURACY, AND ECONOMIC PERFORMANCE: THE NEW EVIDENCE
- Creators
- Merritt FoxRandall MorckBernard YeungArtyom Durnev
- Resource Type
- Journal article
- Publication Details
- Michigan law review, Vol.102(3), pp.331-386
- Publisher
- Michigan Law Review Association
- DOI
- 10.2307/3595365
- ISSN
- 0026-2234
- eISSN
- 1939-8557
- Language
- English
- Date published
- 12/01/2003
- Academic Unit
- Finance
- Record Identifier
- 9984380556702771
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