Financial reporting complexity and investor underreaction to 10-K information

By Haifeng You, Xiao-Jun Zhang. 2009

518 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/f2f8db63d26172fbfcc59cc344ae40d30842117e

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Citations in the corpus

Complex Tax Incentives: An Experimental Investigation (2013, unknown): “(Samuelson and Zeckhauser 1988; Kahneman, Knetsch, and Thaler 1991; Fleming, Thomas, and Dolan 2010). A sizable literature—going back to at least Mill (1848)—analyzes how the complexity of the tax system or the salience of particular taxes affects the political economy of taxation and hypothesizes t”
Going digital: implications for firm value and performance (2019, unknown): “Furthermore, studies have conducted textual analysis of corporate disclosures to examine relationships between nonfinancial variables and prices, much like we do here (Li 2008, 2010; Li, Lundholm, and Minnis 2013; You and Zhang 2009; Feldman et al. 2010; Campbell et al. 2014; Hope et al. 2016).”
Does concrete language in disclosures increase willingness to invest? (2014, unknown): “…tone (Henry 2008; Kothari et al. 2009; Feldman et al. 2010; Demers and Vega 2011; Davis et al. 2012, 2014; Davis and Tama-Sweet 2012), vividness (Hales et al. 2011), and readability (Li 2008; You and Zhang 2009; Miller 2010; Rennekamp 2012; Lawrence 2013; Tan et al. 2013; Lundholm et al. 2014).”
The Pollution Premium (2023, background): “Then, the firms in the highest quintile portfolios are further 39Prior studies suggest that investors tend to underreact to new information (e.g., Bernard and Thomas (1990)), especially for new but complex information (e.g., You and Zhang (2009).”
It Pays to Write Well (2017, unknown): “You and Zhang (2009) suggest that lower readability slows the overall stock market’s reaction to value-relevant information in 10-”
Taxes and Financial Constraints: Evidence from Linguistic Cues (2015, unknown): “Prior research also extensively studies the readability of corporate disclosure, generally showing that market participants incorporate the information into stock prices more completely if corporate filings are easier to read (You and Zhang (2009), Miller (2010), Lehavy et al. (2011)).”
The Evolution of 10-K Textual Disclosure: Evidence from Latent Dirichlet Allocation (2017, background): “…revelation hypothesis in Bloomfield (2002) in which statistics that are costly to extract are not fully incorporated into price, these attributes have been shown to decrease information impounded at the time of the filing and increase subsequent price drift ( Lee, 2012; You and Zhang, 2009 ).”
Processing Fluency and Investors’ Reactions to Disclosure Readability (2012, unknown): “You and Zhang (2009) show that market underreaction to 10-”
How does readability influence investors' judgments? Consistency of benchmark performance matters (2015, background): “Prior studies show that investors’ reactions to bad news will be muted if the entire disclosure is difficult to read (You and Zhang 2009; Miller 2010; Rennekamp 2012).2 We show that in the presence of inconsistent benchmark performance, investors’ reactions to unfavorable benchmark performance can…”
Restoring the Tower of Babel: How Foreign Firms Communicate with U.S. Investors (2014, background): “And finally, You and Zhang (2009) find that the market underreacts to news in the 10-”