NONDISCLOSURE – A GOOD NEWS SIGNAL?

I examine the implications of nondisclosure in a setting where there is a credible signal as to the proprietary nature of the undisclosed information. Specifically, I investigate the market and analysts' response to firms’ application to the Securities and Exchange Commission (SEC) for a confidential treatment order (CTO), which allows firms to redact required disclosures from SEC filings when the redacted information is proprietary. I find that the market and analysts react favorably to the voluntary nondisclosure of proprietary information using the SEC confidential treatment process. Market and analysts reactions are more favorable to the redaction of information that is more likely to have proprietary value, such as information related to research and development. In addition, I show that the redacting firms experience superior accounting performance compared to their peers in the years following the redaction, consistent with the market and analysts’ response to the redaction. However, I find that analysts engage in more intense private information search in response to a CTO redaction. This finding suggests that, although a CTO redaction can signal the nature of undisclosed information, analysts believe that the signal is not fully revealing of the economic magnitude of the undisclosed information. Overall, this study’s findings indicate that a firm's willingness to submit to the CTO approval process serves as a credible signal of the proprietary nature of the withheld information. The results of this study suggest a possible role for a credible signaling channel to facilitate communication between insiders and outsiders regarding the nature of withheld information.

Regenerative Stormwater Conveyance: Design Implications of an Urban Case Demonstration in Baltimore, Maryland

This research-design thesis explores the implementation of Regenerative Stormwater Conveyance (RSC) as a retrofit of an existing impervious drainage system in a small catchment in the degraded Jones Falls watershed in Baltimore City. An introduction to RSC is provided, placing its development within a theoretical context of novel ecosystems, biomimicry and Nassauer and Opdam’s (2008) model of landscape innovation. The case site is in Baltimore’s Hampden neighborhood on City-owned land adjacent to rowhomes, open space and an access point to a popular wooded trail along a local stream. The design proposal employs RSC to retrofit an ill-performing stormwater system, simultaneously providing a range of ecological, social and economic services; water quantity, water quality and economic performance of the proposed RSC are quantified. While the proposed design is site-specific the model is adaptable for retrofitting other small-scale impervious drainage systems, providing a strategic tool in addressing Baltimore City’s stormwater challenges.