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Nobel Laureates

Line of Business Reporting and Security Prices: An Analysis of an SEC Disclosure Rule


Volume: Volume 8, No. 1

Issue: Spring 1977

Pages: pp. 234-249

Authors: Bertrand Horwitz and Richard Kolodny

Title: Line of Business Reporting and Security Prices: An Analysis of an SEC Disclosure Rule

Abstract: This paper examines the impact of line of business reporting, first required by the Securities and Exchange Commission in 1971, on the financial community in general and on the securities markets in particular. The capital asset pricing model is used to assess the effect of this disclosure requirement on the securities markets. Although the conclusions of this study are intended to evaluate required line of business reporting, the study also serves as a focal point to examine the important problem concerning the usefulness of the rapid increase in required disclosure by government regulatory agencies.


JEL Classification

Capital Markets Empirical Studies, Including Regulation (3132)
Business Finance (5210)