Negative peer disclosure

Sean Shun Cao, Vivian W. Fang and (Gillian) Lei, Lijun

Journal of Financial Economics, 2021, vol. 140, issue 3, 815-837

Abstract: This paper provides first evidence of negative peer disclosure (NPD), an emerging corporate strategy to publicize adverse news of industry peers on social media. Consistent with NPDs being implicit positive self-disclosures, disclosing firms experience a two-day abnormal return of 1.6–1.7% over the market and industry. Further exploring the benefits and costs of such disclosures, we find that NPD propensity increases with the degree of product market rivalry and technology proximity and disclosing firms outperform nondisclosing peers in the product markets in the year following NPDs. These results rationalize peer disclosure and extend the scope of the literature beyond self-disclosure.

Keywords: Peer disclosure; Spillover; Product market rivalry; Technology proximity; Social media (search for similar items in EconPapers)
JEL-codes: G14 L1 M41 O30 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinec:v:140:y:2021:i:3:p:815-837

DOI: 10.1016/j.jfineco.2021.02.007

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