Real-time revenue and firm disclosure

Abstract We examine firm disclosure choice when information is received on a real-time, continuous basis. use transaction-level credit and debit card sales for sample of retail firms to construct weekly measure abnormal revenue each firm. validate the informativeness this real-time information, confirming its positive correlation with returns, unexpected realizations, management forecast news. Using forecasts, we find that are less likely disclose abnormally negative news early in quarter. As quarter progresses, reduce their withholding These results consistent impending earnings announcements disciplining managers provide This pattern initial then exists primarily high analyst coverage, institutional ownership, or litigation risk. Finally, increased insider stock weeks no disclosure. Overall, our study provides evidence manager discretion release.