Length of IPO Prospectus and Individual Investors’ Demand for IPO Shares
利用一项要求公司在IPO招股说明书中披露更多信息的监管变化，研究发现新规增加了个人投资者对较长招股说明书股票的需求，表明冗长报告并不总是降低投资者需求。
SYNOPSIS Prior studies on readability suggest that lengthy corporate reports are difficult to process and may discourage investors’ capital market participation. However, longer reports that contain additional information may actually benefit individual investors, who typically rely on public information. Using a regulatory change that requires firms to disclose additional items in the IPO prospectus, we find that the new regulation increased individual investors’ demand for IPO stocks with longer prospectuses. These results suggest that lengthy reports do not always reduce investor demand, highlighting a potential trade-off between the costs and benefits of longer corporate reports. Data Availability: All data are publicly available from the sources identified in the text.