How does a public announcement about a company exploring its potential sale or merger (“strategic alternatives”) affect the company and its shareholders? This study provides the first look at some of the positive and negative consequences to this unique disclosure of strategic alternatives....

Extensive evidence suggests that managers strategically choose the complexity of their descriptive disclosures. However, their motives in doing so appear mixed, as complex disclosures are used to obfuscate in some cases and as a means of informative communication in others. Building on these...

We examine how options trading affects voluntary corporate disclosure to explore how managers strategically disclose in light of potential managerial learning from the options market. We find that options trading reduces the likelihood and frequency of management earnings forecasts, suggesting...

We examine how options trading affects voluntary corporate disclosure, so that we can shed light on whether managers’ potential learning from the options market induces them to withhold disclosure. We find that options trading reduces the likelihood and frequency of management earnings...

Proponents of insider trading argue that informed trading benefits shareholders and could have a positive effect on firm value, however opponents counter that insider trading could be detrimental to firm value. We measure the extent of strategic informed trading by the fraction of insider trades...

This study investigates the impact of strategic order activities during the pre-opening session of trading halts on post-halt return and volatility. Strategic orders are non-binding, aggressive limit orders that are placed in the pre-opening phase but subsequently cancelled or revised shortly...

This paper examines empirically the effect of firm-level business strategies on future stock price crash risk and the extent to which equity overvaluation moderates this relation. By exploring the extent to which firms following particular business strategies are more or less likely to...

This study explores the factors associated with companies' regulatory filing choices surrounding the restatement of previously filed financial statements. Companies have three regulatory filing alternatives of decreasing transparency: file an 8-K report, file an amended report, or restate the...

We conduct an experiment to examine how repeated exposure to earnings notifications and notification checking mode affect investors' reactions to managers' strategic positive emphasis in the title of a disclosure when firm performance is mixed. We find that a title with (versus without) a...