Information externalities and voluntary disclosure: Evidence from a major customer’s earnings announcement

• Main Authors: Cho, Young Jun, KIM, Yongtae, ZANG, Yoonseok
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2020
• Subjects: customer-supplier relationship; supply chain; earnings announcement; information transfers; earnings guidance; voluntary disclosure; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1881; https://ink.library.smu.edu.sg/context/soa_research/article/2907/viewcontent/InformationExternalities_VoluntaryDisclosure_sv.pdf
• Institution: Singapore Management University

We examine the relation between information externalities along the supply chain and voluntary disclosure. Information transfers from a major customer's earnings announcement (EA) can substitute for its supplier's disclosure. Conversely, if the customer's EA increases uncertainties re...