This paper examines the influence of financial accounting disclosures (FAD) on the investors’ reactions towards bad news (IRBN), and analytically assesses the moderation effect of the individual investor’s sentiments particularly” Subjective norms” on that relationship in project-based organizations (PBOs) listed in the UAE financial markets from a financial, and psychological persp…
Managers may strategically use discretion over disclosure language to reduce the effect of bad news and/or amplify the effect of good news. We experimentally test how a warning highlighting management’s discretion over disclosure language affects investors’ reactions to more and less readable disclosures. We find that the warning works as intended for good news disclosures, causing them…
As firms increasingly use social media to provide disclosures to investors, it is important to understand whether the characteristics that are associated with these disclosures lead to different reactions from investors than disclosures provided via more traditional channels. In this paper, we use an experiment to examine whether linguistic formality in positive news disclosures, and engage…