Article (Scientific journals)
Does managerial ability affect disclosure? Evidence from earnings press releases
Yan, Beibei; Arslan-Ayaydin, Ozgur; Thewissen, James et al.
2021In Asian Review of Accounting, 29 (2), p. 192-226
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Abstract :
[en] Using a sample of about 24,000 earnings press releases by S&P1500 firms between 2004 and 2013, we find that low-ability managers inflate the disclosure tone to positively influence labor market's perceptions about their ability. This effect is magnified for younger and shorter-tenured managers, for firms with more intense monitoring and during bear markets. We also show that the tone of earnings press releases of low-ability managers is less informative to predict future firm performance and results in a lower stock price reaction. Overall, our findings confirm that managerial ability affects the credibility of qualitative information.
Disciplines :
Finance
Author, co-author :
Yan, Beibei;  Shanghai University > SHU-UTS SILC Business School
Arslan-Ayaydin, Ozgur;  University of Illinois at Chicago > Department of Finance
Thewissen, James;  Université Catholique de Louvain - UCL > Department of Finance
Torsin, Wouter ;  Université de Liège - ULiège > HEC Liège : UER > Financial Reporting and Audit
Language :
English
Title :
Does managerial ability affect disclosure? Evidence from earnings press releases
Publication date :
2021
Journal title :
Asian Review of Accounting
ISSN :
1321-7348
eISSN :
1758-8863
Publisher :
Emerald, Bingley, United Kingdom
Volume :
29
Issue :
2
Pages :
192-226
Peer reviewed :
Peer Reviewed verified by ORBi
Available on ORBi :
since 24 February 2021

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