March 4, 2022

Monthly mutual fund portfolio disclosures and the efficiency of portfolio firms’ investment decisions

09:30 AM - 10:45 AM



  • Host(s): Assistant Professor Chenqi Zhu
  • Speaker(s): Henock Louis, Professor of Accounting
  • University: Penn State University, Smeal College of Business
Mutual funds’ switches to monthly holding disclosures reduce the efficiency of corporate investments. Consistent with a crowding-out mechanism, the evidence suggests that monthly portfolio disclosures discourage information production activities by other market participants and, consequently, reduce corporate managers’ ability to learn from prices. This effect increases with managers’ incentives to learn from prices and investors’ potential use of monthly fund disclosures. The study sheds light on the regulatory debate on the efficacy of making monthly holdings disclosures available to the public.