 Be alert of the hyped words around fancy tech! Strategic digitalization disclosure under earnings pressureLirong Shentu, Wanzhou Liu and Yuanyuan Liu Finance Research Letters, 2024, vol. 67, issue PA Abstract: We investigate whether managers conduct digitalization-related strategic disclosure when their firms are under earnings pressure based on a sample of Chinese listed companies. Our findings indicate that earnings pressure significantly increases corporate abnormal digitalization disclosure. Meanwhile, the inflated digitalization disclosure under earnings pressure is more pronounced for firms with greater market pressure, under weaker external monitoring, in industries where digitalization is of higher importance, and during the more recent years. Furthermore, our study reveals that more abnormal digitalization disclosure under earnings pressure indeed reduces negative investor reaction, validating the managerial incentive for this disclosure strategy. Our study serves as a caution to investors about the potential exaggeration of novel technology disclosure under certain circumstances. Keywords: Digitalization-related disclosure; Earnings pressure; Strategic disclosure (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324009061 DOI: 10.1016/j.frl.2024.105876 Access Statistics for this article Finance Research Letters is currently edited by R. Gençay More articles in Finance Research Letters from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.