Abstract We examine whether broad-based public engagement by institutional investors influences the behavior of portfolio firms. investigate this question in context BlackRock’s annual Dear CEO letter, which recent years has called for firms to acknowledge and quantify impact environmental regulatory factors on their find that firms’ disclosures during post-letter period reflect topics similar those discussed letters, controlling a variety firm disclosure characteristics occurrence private...

ABSTRACT We examine whether voluntary disclosure is associated with incentives for firms to collude. Public can facilitate collusion by aiding coordination and monitoring defections. Using common ownership (investors holding stock in competing firms) identify reduced compete, we find a positive association between public these incentives. also that positively measures of are likely tacit this stronger industries where easier. Our study expands the literature on competition among showing...

ABSTRACT Despite the increase in and diversity of disclosure channels available, our understanding how managers incorporate channel features into their decisions remains incomplete. I provide evidence that choose relatively rich offer multiple cues, opportunities for interaction, linguistic (i.e., earnings call, as compared to press release) communicate complex information. The positive relation between richness subject matter complexity persists both a document-level analysis small sample...

ABSTRACT We examine how managers’ incentives to minimize litigation risk interact with the unique features of environmental information shape disclosure decisions. rely on peer firms’ lawsuits generate variation in risk, consistent prior research and anecdotal evidence suggesting that firms perceive an increase after a firm is sued for related disclosures. Although we provide mixed around changes total response lawsuits, offer robust more forward-looking (and less historical) disclosures...

We examine whether ESG funds' investment decisions are sensitive to firms' environmental disclosures, beyond summary ratings. create our measures of disclosure using bigrams extracted from the Global Reporting Initiative (GRI) standards trained against authoritative financial reporting texts. Using two salient channels, (1) risk factor portion 10-K filings and (2) earnings conference calls, we find robust evidence that supply is associated with greater fund ownership in subsequent period,...

Investors increasingly hold stock in multiple firms that compete the same product market ("common ownership"). Taking share from peers no longer maximizes shareholder value under common ownership, which incentivizes managers to implement less competitive strategies (Azar, 2016). Consistent with existence of a negative relation between competition and disclosure, we predict find ownership is positively associated voluntary disclosure. We also show result diminished industries for there are...

ABSTRACT While accounting research has extensively examined initial guidance disclosures, the disclosures that managers make when forecasts become materially inaccurate have received much less attention. These updates are unique because communicating their no longer correct. In this context, we examine how earnings forecast withdrawals affect managers' reporting reputation, relative to revisions and nondisclosure. face immediate negative market consequences after withdrawals, they enjoy...

ABSTRACT We examine how disclosure and manager reputation influence capital raised when there is no commercial substance underlying the investment. Special Purpose Acquisition Companies (SPACs or “blank check” companies) do not have operations substantive assets at IPO but promise to use funds acquire a private firm, generally within two years. Given lack of historically poor ex post performance, it unclear what SPACs disclose why investors invest. Although important in traditional IPOs,...

We investigate whether the sustainability implications of firms' innovative pursuits are associated with their disclosure choices. find that firms a greater percentage patents granted in environmentally sound technologies provide more innovation conference calls relative to industry peers, controlling for overall level and quality activity. also respond both (1) environmental media coverage (2) two shocks scrutiny increased disclosure, consistent companies disclosing improve reputation....

We examine whether voluntary disclosure is associated with incentives for firms to collude. Public can facilitate collusion by aiding in coordination and monitoring defections. Using common ownership (investors holding stock competing firms) identify reduced compete, we find a positive association between public these incentives. also positively measures of that are likely tacit this stronger industries where easier. Our study expands the literature on competition among showing collusion....

We examine whether broad-based public engagement by institutional investors influences the behavior of portfolio firms. investigate this question in context BlackRock’s annual “Dear CEO” letter, which recent years has called for firms to acknowledge and quantify impact environmental regulatory factors on their find that firms’ disclosures reflect topics similar those discussed letters during post-letter period, controlling a variety firm disclosure characteristics, occurrence private...

We investigate the role of litigation risk in environmental disclosure decisions. find that after a peer firm is sued for its disclosures, firms provide more forward-looking (and less historical) disclosures their conference calls. Our evidence consistent with managers seeking to minimize being misrepresenting response perceived increase risk. The main result persists both broader sample using Kim and Skinner (2012) measure proxy risk, emissions targets historical do not any respond peers'...

ABSTRACT This paper examines voluntary disclosure in the context of shareholder scrutiny executive compensation contracts. We find that firms voluntarily increase discussion their performance within CD&A disclosures when peer-benchmarked relative to is high. In contrast, we do not a similar corresponding MD&A disclosures, which suggests effect driven by firms’ general practices. also relation between relatively high and strengthens following implementation mandatory Say-on-Pay,...

Over the past three decades, SEC has required firms adopt various technologies to improve "usability" of financial filings (e.g., EDGAR, XBRL). We examine SEC's 2017 hyperlink mandate evaluate effectiveness one such initiative in context Blankespoor et al. (2020) processing cost framework. While expects links external exhibits reduce acquisition costs, research other fields indicates may simultaneously increase integration costs by increasing cognitive load. find little evidence that affects...

Despite the increase in and diversity of disclosure channels available to managers, our understanding how managers incorporate channel features into their decisions remains incomplete. I provide evidence that choose relatively rich (i.e., earnings call, as compared press release) offer multiple cues, opportunities for interaction, linguistic communicate complex information. The positive relation between richness subject matter complexity is robust various measures both complexity, it...

We examine the disclosure quality consequences of copying FASB guidance when drafting initial narrative disclosures. Specifically, we study first-time disclosures after three accounting standard changes with significant requirements (ASU 2014-09, SFAS 161 and 157). find robust evidence that similar to contain less firm-specific information are readable, on average. Moreover, some is associated muted analyst revisions, suggesting resultant may be useful analysts. However, also firms copy new...

In this study we examine the role of disclosure and managerial reputation in firms’ ability to raise capital, by studying Special Purpose Acquisition Companies (SPACs or “blank check companies”). These firms IPO prior having any commercial operations substantive assets with promise acquire merge a private firm, generally within two years. Given limited information, it is unclear how these attract investors. We find evidence that language contained prospectus disclosures are associated funds...

This study aims to show the comparison between TikTok and Facebook as tools for teaching learning English junior high school teachers students of an educational institution in Angeles City, especially after two-year pandemic wherein they had learn their homes use gadgets aid education. To specify, researchers chose social media platforms since these are two most-used during (Statista, 2022). Through this research, can prove whether both effective reliable help improve vocabulary language or...

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While accounting research has extensively examined initial guidance disclosures, the disclosures managers make when forecasts become materially inaccurate have received much less attention. These updates are unique because communicating that their no longer correct. In this context, we examine how earnings forecast withdrawals affect managers’ reporting reputation, relative to revisions and nondisclosure. face immediate negative market consequences after withdrawals, they enjoy reputational...

Prior research suggests that quarterly reports released concurrently with earnings depress trading due to information overload. In this study, we predict concurrent help investors trade when they face uncertainty about how interpret news. We rely on the implementation of ASC 606 as a quasi-exogenous increase in response Specifically, find is high first quarter implementation, 10-Qs are associated increased around announcement. relation more pronounced greater and firms disclosure their...

This paper examines voluntary disclosure in the context of shareholder scrutiny executive compensation contracts. We find that firms voluntarily increase discussion their performance within CD&A disclosures when peer-benchmarked relative to is high. In contrast, we do not a similar corresponding MD&A disclosures, which suggests effect driven by firms’ general practices. also relation between relatively high and strengthens following implementation mandatory Say-on-Pay, increased costs...