Disclosure regulation and information risk

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11 Citations (Scopus)

Abstract

The present paper examines the impact of the Corporations Law Reform Act 1994 on information-based trading in Australian Stock Exchange-listed stocks. Results show that information-based trading is higher in the post-reform period, particularly for lower capitalization stocks. Further analysis shows that this is caused by a fall in turnover and rise in the number of slow trading days. After controlling for these factors, the reform is found to have no impact on information-based trading. Interestingly, the volume of price-sensitive disclosures is found to have no impact on either the level of information-based trading or market spreads. © AFAANZ, 2005.
Original languageEnglish
Pages (from-to)457-477
Number of pages21
JournalAccounting and Finance
Volume45
Issue number3
DOIs
Publication statusPublished - 2005

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