Is the Way Management Discloses Information on Their Prp Status Related to the Level of Institutional Ownership and Analyst Following

Posted: 8 Sep 1997

See all articles by Kirsten Ely

Kirsten Ely

Independent

Elizabeth Stanny

Sonoma State University - School of Business and Economics; Sonoma State University

Date Written: July 1997

Abstract

We examine whether differences in the level of institutional ownership and analyst following are associated with differences in disclosures in annual reports and 10-K filings. We look at whether and how (i.e., quantitative vs. qualitative) a firm discloses information about the number of sites where it is a potentially responsible party (PRP sites). We find that the probability that a firm makes a quantitative disclosure in its 10-K or annual report increases with the proportion of institutional owners. We also find that market value is negatively related to PRP sites only for firms that make quantitative disclosures. When we examine firms that make different disclosures in their annual report and 10-K we find fewer analysts follow them than those disclosing similarly. Together our results suggest that disclosure polices differ according to the composition of financial statement users, and the disclosure language affects how the information is incorporated in to price.

JEL Classification: M41, M45

Suggested Citation

Ely, Kirsten and Stanny, Elizabeth, Is the Way Management Discloses Information on Their Prp Status Related to the Level of Institutional Ownership and Analyst Following (July 1997). Available at SSRN: https://ssrn.com/abstract=10626

Elizabeth Stanny

Sonoma State University - School of Business and Economics ( email )

1801 East Cotati Avenue
Rohnert Park, CA 94928
United States
707-664-4287 (Phone)
707-664-4009 (Fax)

HOME PAGE: http://estanny.com

Sonoma State University ( email )

1801 East Cotati Ave.
School of Business and Economics
Rohnert Park, CA 94928
United States
707-664-4287 (Phone)
707-664-4009 (Fax)

HOME PAGE: http://www.sonoma.edu/users/s/stanny

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