Popular Press
Do Investors Understand Quarterly Risk Factor Reports?
The CLS Blue Sky Blog
(2017)
Abstract
The observed prices of financial assets are a function of the information available to investors regarding the assets. The revelation of new information regarding the future prospects of a firm affects the price of the firm’s financial securities. The news of a corporate merger, the announcement of a CEO resignation, or the announcement of the development of a new product all provide investors with new information regarding the economic prospects of the firm, and thus affect the valuation of outstanding financial claims on the firm’s assets. In our study, we examine one such source of new information. Specifically, we examine the market response to updates to risk factor disclosures required in mandatory, quarterly corporate filings.
Disciplines
Publication Date
January 11, 2017
Citation Information
Joshua J. Filzen, Garrett A. McBrayer and Kyle Shannon. "Do Investors Understand Quarterly Risk Factor Reports?" The CLS Blue Sky Blog (2017) Available at: http://works.bepress.com/josh_filzen/13/