The Information Content of Corporate Earnings: Evidence from the Securities Exchange Act of 1934

We examine whether the Securities Exchange Act of 1934 increased information content corporate earnings disclosures. Prior research questions improved disclosure quality but generally relies on long-window tests and yields mixed results. focus informativeness, improving upon prior designs by focusing short announcement windows employing a difference-in-differences design to control for potential contemporaneous structural changes. document an increase in informativeness following Act, which is larger treatment firms (which withheld before Act) than firms. The more pronounced that are subject stronger enforcement.