Political information flow and management guidance

• 成果类型: Article
• 署名作者: Christensen, Dane M.; Morris, Arthur; Walther, Beverly R.; Wellman, Laura A.
• 署名单位: University of Oregon; Hong Kong University of Science & Technology; Northwestern University; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-022-09671-7
• 发表日期: 2023
• 页码: 1466-1499
• 关键词: uncertainty; POLICY; COMPETITION; disclosure; RISK; complexity; pressure; price

摘要

We examine whether politically connected firms play a role in disseminating political information via their management guidance. Using campaign financing activity or the presence of a government affairs office to proxy for firms' access to political information, we find that politically connected firms are more likely to issue management guidance, and their guidance is more likely to discuss government policies. Further, these relations are attenuated for firms facing high proprietary costs of disclosure. To provide evidence on the source of the political information disclosed through guidance, we examine the timing of when guidance is issued. We find that politically connected firms are more likely to issue guidance and change their government policy-related disclosures prior to the public revelation of government policy decisions. Collectively, these findings suggest that the privileged information firms obtain through their political connections is shared with investors through voluntary disclosures.