The determinants and consequences of firms’ boilerplate answers: Evidence from online interactive platforms in China

Nan Xie, Qifa Xu, Cuixia Jiang and Shanlin Yang

Finance Research Letters, 2023, vol. 58, issue PD

Abstract: We use a BERT-based model to identify firms’ boilerplate answers on online interactive platforms in China. We find that firms are inclined to provide boilerplate answers to investors’ questions on firm performance, but less likely to questions about product market competition. Further findings indicate that the proportion of boilerplate answers is higher when firms’ performance is weaker, while lower when they face greater competition pressure or possess more market power. We also find that firms’ boilerplate answers negatively affect investor trading, market liquidity, and market efficiency. Furthermore, these negative effects are stronger in firms with a poorer information environment.

Keywords: Boilerplate answers; Online interactive platforms; Voluntary disclosure; Market reactions; Textual analysis (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pd:s1544612323010425

DOI: 10.1016/j.frl.2023.104670

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