Whether the narrative innovation disclosure in financial report captures incremental useful information content beyond traditional real innovative activities (i.e., R&D intensity and patent)? To what extent the narrative innovation disclosure is related to real innovative activities? Is there...

This paper investigates the effects of managerial myopia on investment behaviors in China. We construct a new indicator to measure managerial myopia by text analysis and machine learning methods based on the management discussion and analysis (MD&A) in A-share listed company's annual reports...

As an important indicator of earnings quality, earning persistence is perceived as the reflection of operation management and the quality of internal control. It facilitates the optimization of resource allocation and provides investors valuable insights. Strategy is described as the long-term...

Increasingly, consumers depend on social information channels, such as user-posted online reviews, to make purchase decisions. These reviews are assumed to be unbiased reflections of other consumers' experiences with the products or services. While extensively assumed, the literature has not...

We examine the impact of customers' forward-looking disclosures (FLD) contained in the Management Discussion and Analysis section (MD&A) of its 10-K filings on the degree of suppliers' cost asymmetric behavior (i.e., cost stickiness) using computer-intensive techniques. We find that the degree...

We examine the relationship between CDS spreads and annual report readability in this paper. Our results suggest that annual report readability is negatively related to CDS spreads. Furthermore, on the information supply side, the effect of readability on CDS spreads is more concentrated on...

Amendments to NASD Rule 2711 and NYSE Rule 472, enacted in May 2002, mandate that sell-side analysts disclose the distribution of their security recommendations by category of buy, hold, and sell. This regulation enhances the transparency of analysts' information and mitigates the...

The Bullwhip Effect amplifies demand variations through a supply network. Accordingly, we expect that the Bullwhip Effect decreases earnings quality and increases the uncertainty of the public information available to stock investors and creditors. Based on a sample of US public firms from 1998...

In this paper, using news reflected in the stock market as a benchmark for the public information of suppliers, we find significant incremental information revelation in the credit default swap market of the customers. The information revelation is more significant during the periods when either...

In this paper, using newly available CDS positions data compiled from DTCC and the supply chain hierarchical position obtained from networking methodology, we examine whether and how investors can use CDS contracts to manage the heightened operational risk due to upstream supply chain...