TY - JOUR
T1 - Does Modern Information Technology Attenuate Managerial Information Hoarding? Evidence from the EDGAR Implementation
AU - Ni, Xiaoran
AU - Wang, Ye
AU - Yin, David
N1 - Publisher Copyright:
© 2021 Elsevier B.V.
PY - 2021/12
Y1 - 2021/12
N2 - Exploiting the staggered implementation of the EDGAR system from 1993 to 1996 as exogenous shocks to information dissemination technologies, we document that faster dissemination of corporate disclosures through the internet increases firms' future stock price crash risk. These results are robust to alternative sample constructions, measures of crash risk, and fixed effects. Supplemental evidence suggests two channels: an increase in stock liquidity and an increase in investors' reliance on public disclosure, both of which exacerbate managers' incentives to withhold bad news. Overall, our findings suggest that modern information technology may have an unintended effect on managers' bad news hoarding behavior.
AB - Exploiting the staggered implementation of the EDGAR system from 1993 to 1996 as exogenous shocks to information dissemination technologies, we document that faster dissemination of corporate disclosures through the internet increases firms' future stock price crash risk. These results are robust to alternative sample constructions, measures of crash risk, and fixed effects. Supplemental evidence suggests two channels: an increase in stock liquidity and an increase in investors' reliance on public disclosure, both of which exacerbate managers' incentives to withhold bad news. Overall, our findings suggest that modern information technology may have an unintended effect on managers' bad news hoarding behavior.
KW - EDGAR
KW - Information hoarding
KW - Modern information technology
KW - Stock liquidity
KW - Stock price crash risk
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U2 - 10.1016/j.jcorpfin.2021.102100
DO - 10.1016/j.jcorpfin.2021.102100
M3 - Article
AN - SCOPUS:85115999681
SN - 0929-1199
VL - 71
JO - Journal of Corporate Finance
JF - Journal of Corporate Finance
M1 - 102100
ER -