Disclosure Regulation and Price Informativeness: Evidence from Industry-Information Disclosure Guidelines in China
研究中国行业信息披露指引是否提升了公司股价信息含量和文本披露质量，发现公司增加了管理层讨论与分析中的相关信息，股价同步性下降，且披露变化受行业集中度和利润率影响。
We examine whether China’s industry-information disclosure guidelines (IIDGs) improve firms’ stock price informativeness and the quality of their textual disclosure. Employing a stacked difference-in-differences design, we find that applicable firms respond to IIDG implementation by including additional IIDG-related and firm-specific information in the Management Discussion and Analysis (MD&A). Our results also show that the stock market reacts to the enhanced disclosure and incorporates more firm-specific (rather than market-wide or industry-level) information into the stock price, as evidenced by a decrease in stock return synchronicity. Further analyses show that firms with fewer increases in textual disclosure following IIDG implementation are more likely to receive disclosure-related comment letters. Additionally, the extent to which firms change their textual disclosure varies with the industry concentration and firms’ profit margins due to the proprietary costs of disclosure.