Peer Effects of Corporate Disclosure in Pandemic Era

Ryosuke Fujitani, Hyonok Kim and Kazuo Yamada ()

No 240, Working Paper Series from Management Innovation Research Center, School of Business Administration, Hitotsubashi University Business School

Abstract: We show that a peer firm’s management forecast provides information for other firms in the same industry. Specifically, we show that a firm’s management forecast is positively associated with the stock return of other firms in the same industry. Furthermore, we show that such peer effect is observed when peer firms are the first disclosure company in the industry. We also find that the peer effect is more pronounced among firms with higher information asymmetry. Finally, we find that the peer effect is observed only in 2020 and not in other years between 2001 and 2019. Overall, the analysis provides strong evidence of peer effects under the COVID-19 pandemic period. This paper suggests that management forecast of peer firm plays a vital role as useful information set for investors that have limited access to public information due to the global pandemic.

Keywords: information spillover; COVID-19 pandemic; management forecast (search for similar items in EconPapers)
JEL-codes: G14 M4 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2021-01
New Economics Papers: this item is included in nep-bec, nep-cfn and nep-net
Note: This version: January 18, 2021, The latest version: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3768303
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/71052/070micWP_240.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hit:hmicwp:240

Access Statistics for this paper

More papers in Working Paper Series from Management Innovation Research Center, School of Business Administration, Hitotsubashi University Business School Contact information at EDIRC.
Bibliographic data for series maintained by Digital Resources Section, Hitotsubashi University Library ().