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Volume 33 Number 2 December 2008 |
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Does Disclosure Quality via Investor Relations Affect Information Asymmetry? |
| Millicent Chang, Gino D'Anna, Iain Watson, and Marvin Wee
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Abstract |
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High disclosure quality can be achieved through an effective investor-relations program and results in firm benefits such as enhanced market exposure, increased analyst coverage and institutional following. We examine the association between disclosure quality and information asymmetry where a checklist was used to evaluate a firm's Internet-based investor-relations practices. Firms with higher disclosure quality through their investor-relations activities have higher analyst following, more institutional shareholders, more active trading, and are larger in terms of market capitalisation. Bid-ask spread decreased with increased disclosure quality, although the effect of investor relations was weaker in the presence of other factors.
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Keywords |
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INVESTOR RELATIONS; INFORMATION ASYMMETRY; DISCLOSURE.
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Contact DetailsMillicent ChangUWA Business School, The University of Western Australia. Email: millicent.chang@uwa.edu.au Gino D'Anna, Iain Watson, and Marvin Wee UWA Business School, The University of Western Australia. |
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