Does equity underpricing affect voluntary disclosure?

We investigate whether equity underpricing affects the frequency, content, and tone of voluntary corporate disclosures. Using mutual fund redemptions as an exogenous source of underpricing, we find that managers respond by issuing more management forecasts, filing more voluntary 8-K items, and adopting a more positive tone in those filings. The specificity of management forecasts, however, does not change. The response is broad-based: it does not vary with litigation risk or CEO compensation sensitivity, is not mediated by investment, and is not substituted by private exploitation of the underpricing through insider trading, option exercises, or reduced equity issuance. The joint pattern, more disclosure and more positive language without a corresponding increase in informational precision, is more consistent with strategic communication and impression management than with full information provision.