Managers' Voluntary Disclosure Decisions and Business Press Attention

58 Pages Posted: 13 Dec 2019 Last revised: 21 Jan 2020

See all articles by Jake Krupa

Jake Krupa

Tulane University - A.B. Freeman School of Business

Date Written: January 2020

Abstract

I investigate the relation between business press attention and the incidence and properties of managers' voluntary disclosures. Specifically, I examine managers' disclosure responses to a bad news event: material lawsuits against the firm. I posit that managers' disclosure decisions are affected by press attention of this event, since press attention draws additional stakeholders' attention and increases information demand. Examining managers' voluntary Form 8-K Item 8.01 filings, I find that both anticipated and actual press coverage of the lawsuit event are positively associated with the likelihood and timeliness of these filings. Moreover, I find that press attention is associated with several textual characteristics of the filings, including length, tone, and complexity. My study extends a growing literature on the monitoring role of the press and suggests that managers' disclosures of bad news respond to anticipated and actual press scrutiny.

Keywords: Business press, Form 8-K, Litigation, Voluntary disclosure

JEL Classification: D83, G14, K22, L82, M41, M48

Suggested Citation

Krupa, Jake, Managers' Voluntary Disclosure Decisions and Business Press Attention (January 2020). Available at SSRN: https://ssrn.com/abstract=3489326 or http://dx.doi.org/10.2139/ssrn.3489326

Jake Krupa (Contact Author)

Tulane University - A.B. Freeman School of Business ( email )

7 McAlister Drive
New Orleans, LA 70118
United States

HOME PAGE: http://freeman.tulane.edu/faculty-research/accounting/jake-krupa

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