To protect or to hide: An investigation on corporate redacted disclosure motives under new FAST act regulation

• Main Authors: MA, Yan, MAO, Qian, HU, Nan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: Redacted disclosure; Proprietary information; Bad news withholding; Corporate Finance; Databases and Information Systems
• Online Access: https://ink.library.smu.edu.sg/sis_research/8812; https://ink.library.smu.edu.sg/context/sis_research/article/9815/viewcontent/Protect0rHide_av.pdf
• Institution: Singapore Management University

China adopted amendments allowing companies to redact filings without prior approval in 2016. Leveraging this change as a quasi-nature experiment, we explore whether managers utilize redacted information to withhold bad information in the more lenient regulatory environment. Our investigation uncove...