Terrorist attacks, managerial sentiment, and corporate disclosures

• Main Authors: CHEN, Wen, WU, Haibin, ZHANG, Liandong
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: disclosure; behavioral bias; management forecast; sentiment; terrorist attacks; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1837; https://ink.library.smu.edu.sg/context/soa_research/article/2864/viewcontent/CWZ_2020_SMU.pdf
• Institution: Singapore Management University

This study investigates the effect of managerial sentiment on corporate disclosure decisions. Using terrorist attacks in the United States as adverse shocks to managerial sentiment, we find that firms located in the metropolitan areas attacked issue more negatively biased earnings forecasts. The eff...