Disclosure 'Scriptability'

94 Pages Posted: 4 Oct 2017 Last revised: 5 Feb 2018

See all articles by Kristian D. Allee

Kristian D. Allee

University of Arkansas - Department of Accounting

Matthew D. DeAngelis

Georgia State University

James Moon

Georgia Institute of Technology - Scheller College of Business

Multiple version iconThere are 2 versions of this paper

Date Written: January 31, 2018

Abstract

In response to the increasing use of computer programs to process firm disclosures, this registered report develops a new measure of “scriptability” that reflects computerized, rather than human, information processing costs. We validate our measure using SEC filing-derived data from prior research and identify firm and disclosure characteristics related to it. In our planned hypothesis tests, we find some evidence that the speed of the market response to filings increases with scriptability, but find little evidence that scriptability affects the incidence and speed of news dissemination by Dow Jones. In additional analyses, we find that scriptability exhibits both positive and negative associations with changes in information asymmetry between market participants, depending on the filing, trading window, and measure examined. We also find little evidence that XBRL interacts with scriptability in a meaningful way. Overall, our study broadens our understanding of information processing costs and provides opportunities for new avenues of research.

Keywords: disclosure, textual analysis, financial reporting, information processing costs, high-frequency trading, XBRL

JEL Classification: M40, M41, M49, G10, G12, G14, G24, G30, G39, G41

Suggested Citation

Allee, Kristian D. and DeAngelis, Matthew D. and Moon, James, Disclosure 'Scriptability' (January 31, 2018). Journal of Accounting Research, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3046687 or http://dx.doi.org/10.2139/ssrn.3046687

Kristian D. Allee

University of Arkansas - Department of Accounting ( email )

University of Arkansas
Business Building 458
Fayetteville, AR 72701
United States
479-575-5227 (Phone)

Matthew D. DeAngelis

Georgia State University ( email )

515 Robinson College of Business
Atlanta, GA 30302
United States

James Moon (Contact Author)

Georgia Institute of Technology - Scheller College of Business ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

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