| This dissertation investigates whether more frequent disclosure of financial information is associated with lower levels of information asymmetry and greater stock price informativeness. Using a panel of 386 firms in the U.S. retail sector, I find that the practice of providing monthly revenue disclosures is associated with increased price informativeness in that these disclosures pre-empt information in the quarterly earnings announcement. However, in contrast to disclosure quality, more frequent disclosure is not associated with reduced information asymmetry and, in fact, may increase the number of periods when information asymmetry is high. These findings emphasize the fact that disclosure is associated with both costs and benefits and suggest that disclosure content, not frequency, is associated with lower information asymmetry among investors. |
