<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>We report the results of an experiment that shows that investors' earnings- and investment-related judgments are jointly influenced by their investment position (long versus short), the news valence of guidance issued by management, and the amount of ambiguity in the guidance. Prior...

type="main" <title type="main">ABSTRACT</title> <p>Recent studies document that market participants react positively to the positive language sentiment or tone embedded in financial disclosures, and that investors’ reactions to negative news are more muted with poor disclosure readability. However, while language sentiment...</p>