Mandatory disclosure conveys information about past events whereas many investors seek or demand more timely information that is relevant for decision making and control. Hence, some companies voluntarily disclose forward looking information. The dissertation of Joost Impink sheds more light on corporate performance targets through three studies.
The first study examines the Dutch setting in which more than half of the listed firms disclose one or more targets. As expected, firms that meet their target(s) perform better than other firms. In addition, firms that miss their target(s) still perform better than firms that had not issued any targets. The second and third studies compare management forecasts with management targets by examining firms listed in the U.S. The results indicate that the stock market strongly reacts to targets, and that this reaction is concentrated at the time of the announcement.
Curriculum vitae
Joost Impink (Harenkarspel, 1972) studied econometrics, law of taxation and economics of taxation at the university of Amsterdam. He conducted his PhD research at the Faculty of Economics and Business of the University of Groningen. Impink is currently employed as ‘post doctoral associate’ at the University of Florida (US). Impink will be awarded his PhD on 12 May 2011 (11am, Academy Building). His thesis supervisors are prof.dr. C. Cools and prof.dr. J.F.M.G. Bouwens. The thesis title is: Voluntary disclosure of corporate performance targets.
