@article{f7560cefe1a341d7afc21e5664bbde48,
title = "Informing the Market: The Effect of Modern Information Technologies on Information Production",
abstract = "Modern information technologies have fundamentally changed how information is disseminated in financial markets. Using the staggered implementation of the EDGAR system from 1993 to 1996 as a shock to information dissemination technologies, we find evidence that internet dissemination of corporate disclosures increases information production by corporate outsiders. Trades by individual investors, especially those with access to the internet, become more informative about future stock returns following the EDGAR implementation. The amount and accuracy of information produced by sell-side analysts increase after the implementation. These results suggest that greater and broader information dissemination facilitated by modern information technologies improves information production.",
author = "Meng Gao and Jiekun Huang",
note = "Funding Information: got started, corporate filings on EDGAR were available electronically through Mead Data Central, a commercial data vendor, which provided access to the information for a fee (New York Times 1993). The Internet Multicasting Service, a nonprofit organization, secured a National Science Foundation grant to New York University, which made EDGAR filings publicly accessible to internet users without additional charges starting from January 17, 1994. Therefore, for the first four groups of companies, there is an interim period when the filings are electronically filed but are available at a cost, which may limit the accessibility of these filings. We thus redefine the Post-EDGAR indicator for the first four groups to take the value of one if the firm-quarter is after January 17, 1994, and zero otherwise, and create a new variable, Interim, which takes the value of one if the firm-quarter falls in the interim period for the first four groups of companies and zero otherwise. About 1% of the firm-quarters in the sample are classified as being in the interim period. Publisher Copyright: {\textcopyright} 2019 The Author(s) 2019. Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved. For Permissions, please e-mail: journals.permissions@oup.com.",
year = "2020",
month = apr,
day = "1",
doi = "10.1093/rfs/hhz100",
language = "English (US)",
volume = "33",
pages = "1367--1411",
journal = "Review of Financial Studies",
issn = "0893-9454",
publisher = "Oxford University Press",
number = "4",
}