Do weaker firms disclose more?

46 Pages Posted: 6 Oct 2022 Last revised: 3 Apr 2024

See all articles by Venky Nagar

Venky Nagar

University of Michigan, Stephen M. Ross School of Business

Jordan Schoenfeld

Ohio State University (OSU)

Date Written: April 3, 2024


The Ebert et al. (2017) disclosure model predicts that weaker firms, i.e., those that have lower operating performance, will make more disaggregated discretionary disclosures than stronger firms, a result somewhat at odds with traditional discretionary disclosure theory that predicts that stronger firms are more likely to voluntarily disclose. We use the IPO S-1 filing setting to test Ebert et al., and find that higher S-1 disaggregated discretionary disclosure quantity is significantly associated with lower operating performance. Our setting and analyses also plausibly rule out several alternative explanations.

Keywords: Corporate Disclosure, Firm Performance, IPO

JEL Classification: G30, K22, L14, M40

Suggested Citation

Nagar, Venky and Schoenfeld, Jordan, Do weaker firms disclose more? (April 3, 2024). Available at SSRN: or

Venky Nagar

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States
734-647-3292 (Phone)
734-764-3146 (Fax)

Jordan Schoenfeld (Contact Author)

Ohio State University (OSU) ( email )

Blankenship Hall-2010
901 Woody Hayes Drive
Columbus, OH OH 43210
United States

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