Investors increasingly hold stock in multiple firms that compete in the same product market (“common ownership”), and this ownership structure is positively associated with voluntary disclosure. We posit that common owners want managers to take coordinated anti-competitive actions (i.e.,...

We examine the relation between disclosure tone and shareholder litigation to determine whether managers’ use of optimistic language increases litigation risk. Using both general-purpose and context-specific text dictionaries to quantify tone, we find that plaintiffs target more optimistic...

Pay transparency and the pay dispersion it reveals matter to academics, policymakers, and corporate stakeholders. We study how the increased pay transparency brought about by the United States’ CEO pay ratio disclosure rule affected employee pay satisfaction. Economic models of pay...