The Role of Private Disclosures in Markets with Weak Institutions: Evidence from Market Liberalization in China
利用中国市场自由化试点作为冲击，研究发现受影响企业通过增加外资券商主持的私人会议来应对，而非加强公开披露，这改善了价格发现速度和流动性，并吸引了外资。
ABSTRACT I use the announcement of a market liberalization pilot program in China as a shock to firms' disclosure environment and examine how Chinese firms, foreign investors, and foreign brokers respond. Using a proprietary dataset, I find that affected firms respond to the announcement by significantly increasing the number of selective private meetings hosted by major foreign brokers, but do not use public disclosure channels. I find this increase in private disclosure to be stronger among firms that had strong public disclosure track records and are in need of capital. Firms that increased private disclosure experience improvements in speed of price discovery and liquidity. In addition, they also experience an increase in foreign holdings and raise capital abroad through foreign brokers after the pilot program's implementation. Overall, this paper takes a yet-to-mature economy, presents evidence on dynamic shaping of disclosure, and highlights private disclosure as an important positive channel of communication.