Modern Information Technology and Firm Acquisitiveness: Evidence from EDGAR Implementation

Exploiting the staggered implementation of the EDGAR system from 1993 to 1996 as an exogenous shock to information dissemination technologies, we find evidence that internet dissemination of corporate disclosures reduces firm acquisitiveness. This effect is more pronounced for growth firms than value firms. In addition, EDGAR implementation discourages equity-based acquisitions and results in lower announcement returns, especially for growth firms. Our overall findings indicate that EDGAR implementation discourages managerial learning through dampening revelatory price efficiency, yielding inefficient acquisition decisions.