Managers' Strategic Use of Concurrent Disclosure: Evidence from 8-K Filings and Press Releases

• 成果类型: Article
• 署名作者: Rawson, Caleb; Twedt, Brady J.; Watkins, Jessica C.
• 署名单位: University of Arkansas System; University of Arkansas Fayetteville; University of Notre Dame
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/TAR-2021-0088
• 发表日期: 2023
• 页码: 345-371
• 关键词: information acquisition; Textual analysis; earnings; LITIGATION; events

摘要

This study examines managers' strategic use of concurrent disclosures around the announcement of negative material events. We predict and find that managers disclosing negative 8-K news are more likely to issue a concurrent press release about an unrelated event relative to a press release providing additional context for the 8-K-triggering event in order to increase investor information processing costs. This strategy appears distinct from the bundling of news to deter litigation. We find that managers more commonly issue concurrent unrelated press releases when they have stronger incentives to impede the pricing of negative information and that doing so is associated with a reduction in the speed with which prices reflect the news. Our findings shed light on a previously unexplored tool managers use to exploit investors' processing capacity constraints to hide negative news.