type="main" <title type="main">ABSTRACT</title> <p>Can managers influence the liquidity of their firms’ shares? We use plausibly exogenous variation in the supply of public information to show that firms actively shape their information environments by voluntarily disclosing more information than regulations mandate and...</p>

We investigate <link rid="b27">Gompers, Ishii, and Metrick's (2003)</link> finding that firms with weak shareholder rights exhibit significant stock market underperformance. If the relation between poor governance and poor returns is causal, we expect that the market is negatively surprised by the poor operating...