The first chapter of this dissertation analyzes how the textual style of firm disclosures affects investors' information acquisition patterns. Using the SEC EDGAR server logs, I show that investors seek more information in the firm's previous filings when the 10-K is difficult to read and more negative in sentiment. This sensitivity is stronger for small firms and those with few analysts following, suggesting that a weak information environment helps motivate investors to broaden their research. Moreover, I find that owners of the company's stock are far less sensitive to textual attributes than non-owners, but they are more likely to increase their holdings when they do extra research. This chapter is the first to directly analyze how heterogeneity in text style affects those who read disclosures. The second chapter of this dissertation examines abuse of insider stock trading plans made under the SEC's Rule 10b5-1. These plans are meant to defend against allegations of trading on private information. Since the rule was enacted in 2000, however, the plans have been shrouded in secrecy with the vast majority being unannounced until the first trade is made. This chapter studies 10b5-1 plan announcements in 8-K filings to see how many shares the insider plans on selling and compare this with how many shares the insider ends up selling. We find that insiders sell the proposed number of shares in only 24% of announced 10b5-1 plans. We then investigate the firm characteristics that predict following through on 10b5-1 plans. This chapter also updates previous literature's findings on 10b5-1 trades and plan announcements.
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