Muni Disclosure: All talk and no trade?

IF 6.8 1区管理学 Q1 BUSINESS, FINANCE

Journal of Accounting & Economics Pub Date : 2025-08-01 DOI:10.1016/j.jacceco.2025.101797

Christine Cuny , Ken Li , Anya Nakhmurina , Edward M. Watts

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引用次数: 0

Abstract

This paper examines which municipal disclosures provide informational value to investors. Using the entire universe of post-issuance financial and event disclosures from 2009 to 2022, we find that most municipal bonds do not trade in the weeks following a disclosure. However, some disclosures do provide enough new information to increase trading. Investors trade more on credit-relevant disclosures, such as adverse credit event disclosures, and less on required annual financial statements. Trading after disclosures also increases more when a bond is large or risky. Moreover, we find that credit rating agencies respond to disclosures, lending support to the idea that some disclosures have informational value. In further analyses, we find that trading before the disclosure, lack of timeliness, illiquidity, and information processing constraints contribute to the limited trading on the average disclosure. The findings suggest that reconsidering a one-size-fits-all approach to regulating post-issuance municipal disclosures may be worthwhile.

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穆尼披露：光说不做？

本文考察了哪些市政信息披露对投资者提供了信息价值。利用2009年至2022年发行后财务和事件披露的整个领域，我们发现大多数市政债券在披露后的几周内没有交易。然而，一些披露确实提供了足够的新信息来增加交易。投资者更多地依赖与信用相关的披露，如不良信用事件披露，而较少依赖所需的年度财务报表。当债券规模较大或风险较大时，披露后的交易也会增加。此外，我们发现信用评级机构对披露做出了回应，从而支持了某些披露具有信息价值的观点。进一步分析发现，信息披露前的交易、时效性不足、非流动性和信息处理约束是导致平均披露交易受限的原因。研究结果表明，重新考虑一种“一刀切”的方式来监管发行后的市政信息披露可能是值得的。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Accounting & Economics Multiple-

CiteScore

8.70

自引率

6.80%

发文量

期刊介绍： The Journal of Accounting and Economics encourages the application of economic theory to the explanation of accounting phenomena. It provides a forum for the publication of the highest quality manuscripts which employ economic analyses of accounting problems. A wide range of methodologies and topics are encouraged and covered: * The role of accounting within the firm; * The information content and role of accounting numbers in capital markets; * The role of accounting in financial contracts and in monitoring agency relationships; * The determination of accounting standards; * Government regulation of corporate disclosure and/or the Accounting profession; * The theory of the accounting firm.