A Measure of Management’s Withholding of Bad News

IF 2.5 3区管理学 Q2 BUSINESS, FINANCE

European Accounting Review Pub Date : 2023-11-01 DOI:10.1080/09638180.2023.2268677

Vasiliki Athanasakou, Martin Walker

引用次数: 0

Abstract

We develop a measure of management’s withholding of bad news (NBF – net bad flows) based on the relative lumpiness of negative daily abnormal stock returns in the fiscal period. We present an extensive set of tests that support the construct validity of NBF as a measure of management’s bad news withholding. Being calculable for listed companies using daily stock return data, NBF can complement direct scores of corporate disclosures when assessing the overall quality of corporate financial communication. We also compare the properties of NBF with the properties of measures of stock price crash risk. We find that NBF outperforms traditional crash risk measures in capturing bad news withholding. Re-estimating the crash risk measures using daily instead of weekly stock returns yields more powerful proxies for bad news withholding that are more closely related to NBF.

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衡量管理层对坏消息的隐瞒程度

我们开发了一个衡量管理的扣留坏消息(NBF -净坏流量)的基础上，负的每日异常股票收益在财政期间的相对起伏。我们提出了一套广泛的测试，以支持NBF的结构效度作为衡量管理层的坏消息隐瞒。对于上市公司，NBF可以使用每日股票收益数据进行计算，在评估公司财务沟通的整体质量时，可以补充公司披露的直接得分。我们还比较了NBF的性质与股票价格崩溃风险度量的性质。我们发现NBF在捕捉坏消息预扣方面优于传统的崩溃风险度量。使用每日股票收益而不是每周股票收益来重新估计崩溃风险指标，可以产生与NBF更密切相关的更强大的坏消息保留代理。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

European Accounting Review BUSINESS, FINANCE-

CiteScore

7.00

自引率

6.10%

发文量

期刊介绍： Devoted to the advancement of accounting knowledge, it provides a forum for the publication of high quality accounting research manuscripts. The journal acknowledges its European origins and the distinctive variety of the European accounting research community. Conscious of these origins, European Accounting Review emphasises openness and flexibility, not only regarding the substantive issues of accounting research, but also with respect to paradigms, methodologies and styles of conducting that research. Though European Accounting Review is a truly international journal, it also holds a unique position as it is the only accounting journal to provide a European forum for the reporting of accounting research.