Product market competition and disclosure content differentiation: A topic modeling analysis

IF 2.2 3区管理学 Q2 BUSINESS, FINANCE

Journal of Business Finance & Accounting Pub Date : 2024-08-06 DOI:10.1111/jbfa.12827

Yongqiang Chu, Bo Huang, Haitong Li, Junqi Liu

引用次数: 0

Abstract

We examine how product market competition affects firms’ disclosure content. Theory suggests that competition leads firms to strategically disclose to avoid proprietary costs; however, the empirical evidence has been mixed. We investigate whether firms manage disclosure content to protect proprietary information, a disclosure strategy under‐researched in the literature. We use a topic‐modeling technique to extract and compare thematic topics that industry peers disclose in management discussion and analysis (MD&A) in 10‐K filings. Exploiting large reductions in US import tariff rates as an exogenous shock to product market competition, we find that firms differentiate disclosure topics in response. This effect is more pronounced when disclosures incur higher proprietary costs, as theoretically predicted, and stronger for firms with greater product similarity to industry peers and those with longer MD&A disclosure texts.

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产品市场竞争与披露内容差异：主题建模分析

我们研究了产品市场竞争如何影响企业的信息披露内容。理论认为，竞争会导致企业战略性地披露信息以避免专有成本；然而，经验证据却喜忧参半。我们研究了企业是否通过管理披露内容来保护专有信息，文献中对这一披露策略的研究不足。我们使用主题建模技术，提取并比较行业同类公司在 10-K 文件的管理层讨论与分析（MD&A）中披露的主题。利用美国大幅降低进口关税率作为产品市场竞争的外生冲击，我们发现企业会对披露主题做出不同反应。正如理论上所预测的那样，当信息披露产生更高的专有成本时，这种效应会更加明显，而对于那些产品与行业同行相似度更高的企业以及那些 MD&A 披露文本更长的企业来说，这种效应会更强。

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

Journal of Business Finance & Accounting BUSINESS, FINANCE-

CiteScore

4.40

自引率

17.20%

发文量

期刊介绍： Journal of Business Finance and Accounting exists to publish high quality research papers in accounting, corporate finance, corporate governance and their interfaces. The interfaces are relevant in many areas such as financial reporting and communication, valuation, financial performance measurement and managerial reward and control structures. A feature of JBFA is that it recognises that informational problems are pervasive in financial markets and business organisations, and that accounting plays an important role in resolving such problems. JBFA welcomes both theoretical and empirical contributions. Nonetheless, theoretical papers should yield novel testable implications, and empirical papers should be theoretically well-motivated. The Editors view accounting and finance as being closely related to economics and, as a consequence, papers submitted will often have theoretical motivations that are grounded in economics. JBFA, however, also seeks papers that complement economics-based theorising with theoretical developments originating in other social science disciplines or traditions. While many papers in JBFA use econometric or related empirical methods, the Editors also welcome contributions that use other empirical research methods. Although the scope of JBFA is broad, it is not a suitable outlet for highly abstract mathematical papers, or empirical papers with inadequate theoretical motivation. Also, papers that study asset pricing, or the operations of financial markets, should have direct implications for one or more of preparers, regulators, users of financial statements, and corporate financial decision makers, or at least should have implications for the development of future research relevant to such users.