How Do Investors Assess the Credibility of Management Disclosures

By Molly Mercer. 2004

442 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/32e7d636bd33f7a38142f83d97ff0eaaaf44bb66

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Citations in the corpus

Framing Controversial Actions: Regulatory Focus, Source Credibility, and Stock Market Reaction to Poison Pill Adoption (2014, background): “…with the notion of shareholder value by conveying that (a) the adoption of a poison pill will 1738 DecemberAcademy of Management Journal increase shareholder value (a focus on gains), or that (b) the adoption of the pill ensures the protection of shareholder value (a focus on nonlosses).”
Societal Trust and Management Earnings Forecasts (2020, background): “Our hypothesis is based on the reasoning that the weight investors place on information is a function of both its nature and its credibility (Jennings 1987), and the credibility tends to be higher if management is perceived as more trustworthy (Mercer 2004).”
How Disaggregation Enhances the Credibility of Management Earnings Forecasts (2007, unknown): “and Pae [2004], Demski and Frimor [1999]).”
Evidence on the Information Content of Text in Analyst Reports (2014, background): “The psychology literature suggests that when a communicator’s message disconfirms the recipient’s prior expectation, the recipient will find it more difficult to judge the validity of the message and will seek information from the communicator’s message arguments (Hirst et al. 1995; Mercer 2004).”
The Fleeting Effects of Disclosure Forthcomingness on Management's Reporting Credibility (2005, background): “Articles in the popular press often detail managers’ credibility struggles and subsequent attempts to regain reporting credibility.1 The academic literature confirms that managers’ credibility concerns are warranted—more credible managers are better able to communicate information to the capital mar”
The spillover effects of MD&A disclosures for real investment: The role of industry competition (2019, background): “…rivals' credibility as the accuracy of rivals' prior-year management earnings forecasts, defined as the absolute value of the difference between the rival's management forecast for its t 1 EPS and the actual t 1 EPS, averaged across all rivals and multiplied by negative unity (Mercer, 2004).”
Informational Content and Assurance of Textual Disclosures: Evidence on Integrated Reporting (2019, unknown): “We thus address concerns 58 A. Caglio et al. in Mercer (2004) that the interactions between assurance and disclosure characteristics remain unexplored.”
Mitigating information asymmetry through sustainability assurance: The role of accountants and levels of assurance (2017, background): “(2009), Moroney et al. (2012), Kolk and Perego (2010) and Zorio et al.”
Are Investors Influenced By How Earnings Press Releases Are Written? (2008, unknown): “Similarly, Mercer (2004) argued that greater numerical precision in management’s forecasts enhances investors’ assessment of the credibility of management disclosure.”
The tone of business model disclosure: an impression management analysis of the integrated reports (2015, background): “In this respect, we draw on Mercer (2004), who asserts that the disclosure credibility must be appraised separately for each single disclosure item and may vary within a single firm across different disclosure item.”
Financial Reporting and the Protection of Socioemotional Wealth in Family-Controlled Firms (2014, background): “Hence, even though the disclosing of precise information would be better perceived by investors (Hirst, Koonce, & Venkataraman, 2007; Mercer, 2004; Rogers & Stocken, 2005), such characteristics appear particularly dangerous for the maintenance of family’s control and interests.”
Determinants of compliance with AAOIFI standards by Islamic banks (2016, background): “Disclosure are expected to be higher for highly profitable IBs than low profit 3.1.5 Internal Sharia auditing department (ISAD) Mercer (2004) argued that the Sharia auditing department “ serve as the first line of defence against disclosure errors, ferreting out unintentional errors caused by weakne”
Beyond the Numbers: Measuring the Information Content of Earnings Press Release Language (2011, background): “Second, managers’ earnings press release language is not subject to the primary, credibility-enhancing mechanism of independent third-party assurance (i.e., auditing), which is a factor likely relevant to investors’ assessments of disclosure credibility (Mercer 2004).”