Economic policy uncertainty and narrative R&D disclosures

Keumah Jung and Sehee Kim

Finance Research Letters, 2024, vol. 70, issue C

Abstract: This study examines the impact of economic policy uncertainty on narrative R&D disclosure. Analyzing 10-K reports from 1997 to 2020, we find that the quantity of R&D disclosure increases with economic policy uncertainty. We also document that firms provide more forward-looking R&D disclosure during uncertain periods. Finally, we find that such impact is more pronounced for the firms with high return volatility and firms in the early-stage of business cycle. We contribute to the literature by showing how managers adjust R&D disclosures in response to economic policy uncertainty.

Keywords: Economic policy uncertainty (EPU); R&D disclosure; Textual analysis (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324013199

DOI: 10.1016/j.frl.2024.106290

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