“Investor Horizon and Commitment to Disclosure” by Dr. Brian D. Cadman
Dr. Brian D. Cadman
Associate Professor of Accounting
David Eccles School of Business
University of Utah
We present and empirically test a model of shareholder investment horizon and firm disclosure. We predict that firms with shorthorizon controlling shareholders commit to more disclosure than other firms. Using an IPO setting, where we can identify an investor with a well defined investment horizon, and a broad spectrum of voluntary disclosures in 8-K filings, we find evidence
that firms owned by venture capitalists commit to greater disclosure than other IPO firms. Our study contributes to the voluntary disclosure literature by shedding additional light on firm commitment to disclosure and investor horizon.
All Interested are Welcome