Outbreak risk, managerial distraction, and corporate information disclosure: Evidence from the COVID-19 pandemic
Pacific-Basin Finance Journal
; : 101736, 2022.
Article
in English
| ScienceDirect | ID: covidwho-1699320
ABSTRACT
To fill the gaps between managerial distraction and disclosure quality of management earnings forecasts (MEFs), we examine the effects of managerial selective attention resulting from the COVID-19 pandemic. Using this pandemic in 2020 as an adverse shock potentially causing managerial distraction, results based on a difference-in-differences estimation suggest that managerial distraction had a negative effect on MEFs and affected forecast quality by increasing work burden and perceptual narrowing among managers, while cash reserves demonstrated a preventive function and alleviated such adverse effects. Our findings are robust, as supported by tests that address potential measurement errors.
Full text:
Available
Collection:
Databases of international organizations
Database:
ScienceDirect
Type of study:
Prognostic study
Language:
English
Journal:
Pacific-Basin Finance Journal
Year:
2022
Document Type:
Article
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