Quotation Dai, Rui, Duan, Rui, Ng, Lilian. 2019. Withholding Bad News When Competing Peers Have Common Customers. China International Conference in Finance Annual Conference, Guangzhou, China, 09.07-12.07.


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Abstract

This paper examines whether and how existing competitors producing similar products and supplying to common corporate customers (connected peer firms) influence a firm's strategic disclosure of adverse information. Results show that when faced with intense competition from existing competitors, managers tend to withhold disclosing bad news, a finding further supported by three sources of exogenous variation in competition from the connected peer firms. Potential competition from non-connected peers, however, is negatively associated with managerial bad news withholding behavior. Finally, we find that customer-connected peers, customers, and investors play a crucial role in shaping the managerial practice of adverse news disclosure.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title Withholding Bad News When Competing Peers Have Common Customers
Event China International Conference in Finance Annual Conference
Year 2019
Date 09.07-12.07
Country China
Location Guangzhou
JEL G11, G23, G32

Associations

People
Duan, Rui (Details)
External
Dai, Rui (Wharton Research Data Services, United States/USA)
Ng, Lilian (York University, Canada)
Organization
Institute for Finance, Banking and Insurance IN (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5327 Accounting (Details)
5358 Corporate finances (Details)
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