Asymmetric Reporting Timeliness and Informational Feedback-Reference-Cited by-同舟云学术

Asymmetric Reporting Timeliness and Informational Feedback

Published:2021-08 Issue:8 Volume:67 Page:5194-5208
ISSN:0025-1909
Container-title:Management Science
language:en
Short-container-title:Management Science

Author:

Chen Qi¹²^ORCID,Huang Zeqiong³^ORCID,Jiang Xu¹^ORCID,Zhang Gaoqing⁴^ORCID,Zhang Yun⁵^ORCID

Affiliation:

1. Accounting Group, Duke University, Durham, North Carolina 27708;

2. Accounting Department, Tsinghua University, Beijing 100084, China;

3. Accounting Group, Yale University, New Haven, Connecticut 06511;

4. Accounting Department, University of Minnesota, Minneapolis, Minnesota 55455;

5. Accounting Department, George Washington University, Washington, District of Columbia 20052

Abstract

We examine the effects of asymmetric timeliness in reporting good versus bad news on price informativeness when prices provide useful information to assist firms’ investment decisions. We find that a reporting system featuring more timely disclosure of bad news than of good news encourages speculators to trade on their private information. Consequently, it generates a higher expected investment level and firm value. Our analysis generates predictions consistent with empirical findings and provides a justification for the more timely reporting of bad news in the absence of managerial incentive problems. This paper was accepted by Brian Bushee, accounting.

Publisher

Institute for Operations Research and the Management Sciences (INFORMS)

Subject

Management Science and Operations Research,Strategy and Management

Reference39 articles.

1. Asymmetric Reporting

2. Synergy between Accounting Disclosures and Forward-Looking Information in Stock Prices

3. The conservatism principle and the asymmetric timeliness of earnings1

4. Optimal Conservatism with Earnings Manipulation

5. The Real Effects of Financial Markets

Cited by 11 articles. 订阅此论文施引文献订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献

1. Coordination and Conservatism;Finance Research Letters;2024-03

2. Asymmetric Disclosure, Noise Trade, and Firm Valuation;The Accounting Review;2023-08-31

3. Real Effects of Measuring and Reporting Unrealized Fair Value Gains;SSRN Electronic Journal;2023

4. Sooner or later? A study of report timing;Production and Operations Management;2022-11-20

5. An option-based approach to measuring disclosure asymmetry;The Accounting Review;2022-11-01