Skip to main content

Asymmetric reporting timeliness and informational feedback

Publication ,  Journal Article
Chen, Q; Huang, Z; Jiang, X; Zhang, G; Zhang, Y
Published in: Management Science
August 1, 2021

We examine the effects of asymmetric timeliness in reporting good versus bad news on price informativeness when prices provide useful information to assist firms' investment decisions. We find that a reporting system featuring more timely disclosure of bad news than of good news encourages speculators to trade on their private information. Consequently, it generates a higher expected investment level and firm value. Our analysis generates predictions consistent with empirical findings and provides a justification for the more timely reporting of bad news in the absence of managerial incentive problems.

Duke Scholars

Published In

Management Science

DOI

EISSN

1526-5501

ISSN

0025-1909

Publication Date

August 1, 2021

Volume

67

Issue

8

Start / End Page

5194 / 5208

Related Subject Headings

  • Operations Research
  • 46 Information and computing sciences
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 08 Information and Computing Sciences
 

Citation

APA
Chicago
ICMJE
MLA
NLM
Chen, Q., Huang, Z., Jiang, X., Zhang, G., & Zhang, Y. (2021). Asymmetric reporting timeliness and informational feedback. Management Science, 67(8), 5194–5208. https://doi.org/10.1287/mnsc.2020.3734
Chen, Q., Z. Huang, X. Jiang, G. Zhang, and Y. Zhang. “Asymmetric reporting timeliness and informational feedback.” Management Science 67, no. 8 (August 1, 2021): 5194–5208. https://doi.org/10.1287/mnsc.2020.3734.
Chen Q, Huang Z, Jiang X, Zhang G, Zhang Y. Asymmetric reporting timeliness and informational feedback. Management Science. 2021 Aug 1;67(8):5194–208.
Chen, Q., et al. “Asymmetric reporting timeliness and informational feedback.” Management Science, vol. 67, no. 8, Aug. 2021, pp. 5194–208. Scopus, doi:10.1287/mnsc.2020.3734.
Chen Q, Huang Z, Jiang X, Zhang G, Zhang Y. Asymmetric reporting timeliness and informational feedback. Management Science. 2021 Aug 1;67(8):5194–5208.

Published In

Management Science

DOI

EISSN

1526-5501

ISSN

0025-1909

Publication Date

August 1, 2021

Volume

67

Issue

8

Start / End Page

5194 / 5208

Related Subject Headings

  • Operations Research
  • 46 Information and computing sciences
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 08 Information and Computing Sciences