Subject Matter Complexity and Disclosure Channel Richness

• 成果类型: Article
• 署名作者: Skinner, A. Nicole
• 署名单位: University of Colorado System; University of Colorado Boulder
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/TAR-2021-0337
• 发表日期: 2024
• 页码: 393-425
• 关键词: earnings press releases; voluntary disclosure; CONFERENCE CALLS; Textual analysis; managers use; pro forma; INFORMATION; dissemination; PRESENTATIONS; FIRMS

摘要

Despite the increase in and diversity of disclosure channels available, our understanding of how managers incorporate channel features into their disclosure decisions remains incomplete. I provide evidence that managers choose relatively rich channels that offer multiple cues, opportunities for interaction, and linguistic diversity (i.e., the earnings call, as compared to the press release) to communicate complex information. The positive relation between disclosure channel richness and subject matter complexity persists in both a document -level analysis and a small sample test examining disclosure channel choice from all possible disclosure channels. I provide some evidence that deviating from the complexity/richness matching strategy is associated with a muted market response to firms' quarterly disclosures. The results are consistent with managers choosing disclosure channels to reduce investors' information processing costs.