Access the full text.
Sign up today, get DeepDyve free for 14 days.
Douglas Skinner (1997)
Earnings Disclosures and Stockholder LawsuitsChicago Booth ARC: Financial Accounting (Topic)
Ulrike Malmendier, Geoffrey Tate (2015)
Behavioral CEOs: The Role of Managerial OverconfidenceJournal of Economic Perspectives, 29
Gustavo Grullon, S. Michenaud, J. Weston (2014)
The Real Effects of Short-Selling ConstraintsMicroeconomics: Production
(1997)
Incremental information content of required disclosures contained in management discussion and analysis
S. Banerjee, M. Humphery‐Jenner, V. Nanda, M. Tham (2018)
Executive overconfidence and securities class actions, 53
P. Koh, D. Reeb, Wanli Zhao (2017)
CEO Confidence and Unreported R&DManag. Sci., 64
Feng Li (2008)
Annual Report Readability, Current Earnings, and Earnings PersistenceJournal of Accounting and Economics, 45
E. Chang, Tse-Chun Lin, Xiaorong Ma (2018)
Does Short-selling Threat Discipline Managers in Mergers and Acquisitions Decisions?Regulation of Financial Institutions eJournal
A. K. Davis, I. Tama‐Sweet (2012)
Managers' use of language across alternative disclosure outlets: earnings press releases versus MD&A, 29
(1993)
The Stock Market, Profit, and Investment
Alex Edmans (2009)
Blockholder Trading, Market Efficiency, and Managerial MyopiaCorporate Finance: Governance
K. B. Diether, K. H. Lee, I. M. Werner (2009a)
It's SHO time! Short‐sale price tests and market quality, 64
E. Miller (1977)
Risk, Uncertainty, and Divergence of OpinionJournal of Finance, 32
R. E. Verrecchia, J. Weber (2006)
Redacted disclosure, 44
Kin Lo, Felipe Ramos, Rafael Rogo (2016)
Earnings Management and Annual Report ReadabilityCGN: Disclosure & Accounting Decisions (Topic)
Sheng Huang, Johan Maharjan, A. Thakor (2018)
Disagreement-induced CEO TurnoverCGN: Other Corporate Governance: Disclosure
Andrew Bird, S. Karolyi (2016)
Do Institutional Investors Demand Public DisclosureReview of Financial Studies, 29
K. Bochkay, C. B. Levine (2019)
Using MD&A to improve earnings forecasts, 34
Julia D’Souza, K. Ramesh, Min Shen (2010)
Disclosure of GAAP line items in earnings announcementsReview of Accounting Studies, 15
Xiaohu Deng, Lei Gao, Jeong‐Bon Kim (2019)
Short-sale Constraints and Stock Price Crash Risk: Causal Evidence from a Natural ExperimentCGN: Enforcement & Litigation (Topic)
S. Kaplan, Luigi Zingales (1997)
Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?Quarterly Journal of Economics, 112
Anat Admati, P. Pfleiderer (2007)
The 'Wall Street Walk' and Shareholder Activism: Exit as a Form of VoiceStanford Graduate School of Business Research Paper Series
David Angelis, Gustavo Grullon, S. Michenaud (2016)
The Effects of Short-Selling Threats on Incentive Contracts: Evidence from an ExperimentERN: CEO & Executive Motivation & Incentives (Topic)
Brian Bushee, Christopher Noe (2000)
Corporate Disclosure Practices, Institutional Investors, and Stock Return VolatilityJournal of Accounting Research, 38
S. V. Brown, J. W. Tucker (2011)
Large‐sample evidence on firms' year‐over‐year MD&A modifications, 49
Yan Sun (2010)
Do MD&A Disclosures Help Users Interpret Disproportionate Inventory Increases?The Accounting Review, 85
D. Burgstahler, I. Dichev (1997)
Earnings management to avoid earnings decreases and losses, 24
Franklin Allen, S. Morris, Andrew Postlewaite (1993)
Finite Bubbles with Short Sale Constraints and Asymmetric InformationJournal of Economic Theory, 61
Harrison Hong, J. Stein (2003)
Differences of Opinion, Short-Sales Constraints, and Market CrashesReview of Financial Studies, 16
M. Massa, Bohui Zhang, H. Zhang (2014)
The Invisible Hand of Short Selling: Does Short Selling Discipline Earnings Management?ERN: Econometric Studies of Capital Markets (Topic)
Angela Davis, Isho Tama-Sweet (2012)
Managers’ Use of Language Across Alternative Disclosure Outlets: Earnings Press Releases versus MD&A*: Language in Earnings Press Releases vs. MD&AContemporary Accounting Research, 29
Mary Barth, John Elliott, Mark Finn (1999)
Market rewards associated with patterns of increasing earningsJournal of Accounting Research, 37
Douglas Diamond, Robert Verrecchia (1987)
Constraints on short-selling and asset price adjustment to private informationJournal of Financial Economics, 18
R. M. Bowen, A. K. Davis, D. A. Matsumoto (2005)
Emphasis on pro forma versus GAAP earnings in quarterly press releases: determinants, 80
S. J. Peters, M. Singh (2013)
Financial reporting disclosures: investor perspectives on transparency, trust, and volume
Vivian Fang, Allen Huang, Jonathan Karpoff (2015)
Short Selling and Earnings Management: A Controlled ExperimentFEN: Experimental Finance (Topic)
Karl Diether, Kuan-Hui Lee, Ingrid Werner (2009)
Short-Sale Strategies and Return PredictabilityReview of Financial Studies, 22
Woojin Kim, M. Weisbach (2005)
Motivations for Public Equity Offers: An International PerspectiveEmerging Markets: Finance
P. Hribar, Holly Yang (2015)
CEO Overconfidence and Management ForecastingLRN: Consequences of Leadership (Topic)
H. DeAngelo, L. DeAngelo, D. J. Skinner (1996)
Reversal of fortune dividend signaling and the disappearance of sustained earnings growth, 40
G. Alexander, M. Peterson (2008)
The effect of price tests on trader behavior and market quality: An analysis of Reg SHO ☆Journal of Financial Markets, 11
R. Bowen, Angela Davis, Dawn Matsumoto (2005)
Emphasis on Pro Forma Versus Gaap Earnings in Quarterly Press Releases: Determinants, Sec Intervention, and Market ReactionsS&P Global Market Intelligence Research Paper Series
S. Kaplan, L. Zingales (1997)
Do financing constraints explain why investment is correlated with cash flow?, 112
C. J. Cole, C. L. Jones (2004)
The usefulness of MD&A disclosures in the retail industry, 19
D. Rapach, Matthew Ringgenberg, Guofu Zhou (2016)
Short Interest and Aggregate Stock ReturnsERN: Asset Pricing Models (Topic)
Douglas Skinner (1994)
WHY FIRMS VOLUNTARILY DISCLOSE BAD-NEWSJournal of Accounting Research, 32
Volkan Muslu, S. Radhakrishnan, K. Subramanyam, D. Lim (2015)
Forward-Looking MD&A Disclosures and the Information EnvironmentCapital Markets: Market Efficiency eJournal
Dichu Bao, Yongtae Kim, G. Mian, L. Su (2018)
Do Managers Disclose or Withhold Bad News? Evidence from Short InterestMicroeconomics: Asymmetric & Private Information eJournal
Y. Li, L. Zhang (2015)
Short selling pressure, stock price behavior, and management forecast: evidence from a natural experiment, 53
Karl Diether, Kuan-Hui Lee, Ingrid Werner (2007)
Charles A. Dice Center for Research in Financial Economics It’s SHO Time! Short-Sale Price-Tests and Market Quality
Greg Clinch, Wei Li, Yunyan Zhang (2016)
Short Selling and Firms’ Disclosure of Bad News: Evidence from Regulation SHOCorporate Finance: Governance
P. Healy, K. Palepu (2000)
Information Asymmetry, Corporate Disclosure and the Capital Markets: A Review of the Empirical Disclosure LiteratureManagement Practice
Using the SEC's Regulation SHO as a natural experiment, we examine the effect of an increase in short selling pressure on the year‐over‐year modification of management discussion and analysis (MD&A) section of firms' 10‐K reports. We find that the elevated threat of short selling, resulting from the removal of short‐sale constraint, causes the randomly selected pilot firms to modify the MD&A section less relative to the previous year than non‐pilot firms during the Regulation SHO period (2005–2007). Moreover, cross‐sectional analyses indicate that this effect is pronounced in firms with moderately good news; firms that increase investment or equity issuance; larger or overvalued firms; and firms with conservative managers, financial stability, and opaque information environments.
Accounting & Finance – Wiley
Published: Sep 1, 2022
Keywords: Corporate disclosure; Management’s discussion and analysis (MD&A); Short‐selling threats; Price efficiency; Exogenous shock
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.