Disclosure Tone and Shareholder Litigation

By Jonathan L. Rogers, Andrew Van Buskirk, Sarah L. C. Zechman. 2011

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Citations in the corpus

Textual Sentiment in Finance: A Survey of Methods and Models (2014, neutral): “Henry and Leone (2009), Davis et al. (2011), Davis and Tama-Sweet (2011), Demers and Vega (2011), Durnev and Mangen (2011), Rogers et al. (2011), Davis et al. (2012), and Ferris et al. (2012) all employ DICTION in their research .”
The Effect of Issuer Conservatism on IPO Pricing and Performance (2013, unknown): “The findings of this study add to the new and growing literature using textual analysis (e.g., Demers and Vega, 2008; Davis et al., 2008; Rogers et al., 2011; Doran et al., 2009) and have important implication regarding future research on new issues.”
Simultaneously Discovering and Quantifying Risk Types from Textual Risk Disclosures (2014, background): “Rogers et al. (2011) use both general-purpose and context-specific text dictionaries to quantify optimistic and pessimistic tones in firms’ earnings announcements.”
Prozac leadership and the limits of positive thinking (2012, background): “Rogers et al. (2011) argue that executives’ use of overly optimistic disclosures (especially about corporate earnings) increases the risk of the firm being sued by shareholders.”
The Effect of Managerial "Style" on the Tone of Earnings Conference Calls ∗ (2012, background): “On the other hand, given the potential litigation costs (Rogers et al. 2011) as well as reputational costs associated with using overly optimistic (or pessimistic) language, one might argue that corporate disclosures are carefully “vetted” prior to release.”
The Governance Effect of the Media's News Dissemination Role: Evidence from Insider Trading (2015, unknown): “remuneration, as proxies for insiders’ concerns regarding their personal wealth (Roulstone [2003], Ofek and Yermack [2000]).”
Taxes and Financial Constraints: Evidence from Linguistic Cues (2015, unknown): “Rogers, Buskirk, and Zechman (2011) find firms that use more optimistic words are more likely to be the targets of lawsuits, although in an early study Francis, Philbrick, and Schipper (1994) find no evidence that firms that are subject to shareholder lawsuit use more optimistic words in their…”
Does Litigation Deter or Encourage Real Earnings Management? (2019, unknown): “Further, Rogers et al. (2011) report that in a randomly selected sample of 20 lawsuits, 55% referenced optimistic statements occurring within the 10-Ks. Requiring the availability of MD&As and the data for computing abnormal tone reduces the sample size significantly.”