Policy Uncertainty and Corporate Voluntary Disclosure

Date
2021
Authors
Lee, Ruby
Thompson, Madeline
Williams, Christopher D.
Contributor
Advisor
Department
Instructor
Depositor
Speaker
Researcher
Consultant
Interviewer
Journal Title
Journal ISSN
Volume Title
Publisher
Volume
Number/Issue
Starting Page
Ending Page
Alternative Title
Abstract
This study examines how policy uncertainty affects the nature and timing of corporate voluntary disclosure. Using a news-based index of policy uncertainty, we find that during periods of high uncertainty, managers are less likely to provide earnings forecasts but are more likely to issue non-earnings forecasts. Policy uncertainty also increases managers’ propensity to disclose non-GAAP earnings and attend corporate access events, which facilitate face-to-face interactions between managers and capital market participants. Moreover, managers alter disclosure timing by providing information in shorter windows but after hours. Our results suggest that during periods of high policy uncertainty, managers alter their disclosure strategy by using a multifaceted approach to meet investors’ information demand.
Description
Keywords
policy uncertainty, voluntary disclosure, management earnings forecasts, corporate access events
Citation
Extent
Format
Geographic Location
Time Period
Related To
Rights
Rights Holder
Email libraryada-l@lists.hawaii.edu if you need this content in ADA-compliant format.