Tag Archives: disclosures

Clarification or Confusion: A Textual Analysis of ASC 842 Lease Transition Disclosures

By | September 5, 2022

In our recent paper, we study the textual meaning of the financial statement transition disclosures in firms’ filings with the Securities and Exchange Commission (SEC) explaining the likely effects of the adoption of Accounting Standards Codification (ASC) 842 on leases. Under President Franklin Delano Roosevelt, Congress established that the SEC’s backbone be based on a sufficient… Read More »

The Information Role of the Media in Earnings News

By | July 14, 2021

A central question about the media’s role in capital markets is whether media coverage influences investors’ reactions to firms’ disclosures, such as earnings releases. Multiple studies provide evidence consistent with the media disseminating, but not creating, information that influences the market’s earnings response. Specifically, they find that brief articles without, but not lengthier articles with,… Read More »