IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v217y2022ics0165176522002270.html
   My bibliography  Save this article

The effect of the COVID-19 pandemic on information disclosure: Evidence from China

Author

Listed:
  • Wan, Zhao
  • Tian, Haowen

Abstract

Using Chinese data, this study examines the effect of COVID-19 pandemic on tendencies and characteristics of information disclosure. Results show that, due to uncertainty caused by the pandemic, it is difficult to make earnings forecasts. Further, during the pandemic, forecast precision and timeliness decrease. The results remain unchanged under difference-in-difference (DiD) estimation. The findings of this paper extend existing studies on the economic consequences of COVID-19 pandemic and the influencing factors of information disclosure, providing implications for corporate managers, investors, and regulators.

Suggested Citation

  • Wan, Zhao & Tian, Haowen, 2022. "The effect of the COVID-19 pandemic on information disclosure: Evidence from China," Economics Letters, Elsevier, vol. 217(C).
    • Handle: RePEc:eee:ecolet:v:217:y:2022:i:c:s0165176522002270
    DOI: 10.1016/j.econlet.2022.110678
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176522002270
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2022.110678?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Croce, Mariano & Farroni, Paolo & Wolfskeil, Isabella, 2020. "When the Markets Get COVID: COntagion, Viruses, and Information Diffusion," CEPR Discussion Papers 14674, C.E.P.R. Discussion Papers.
    2. Jena, Pradyot Ranjan & Majhi, Ritanjali & Kalli, Rajesh & Managi, Shunsuke & Majhi, Babita, 2021. "Impact of COVID-19 on GDP of major economies: Application of the artificial neural network forecaster," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 324-339.
    3. Kitagawa, Norio, 2021. "Macroeconomic uncertainty and management forecast accuracy," Journal of Contemporary Accounting and Economics, Elsevier, vol. 17(3).
    4. Chen, Shuping & Matsumoto, Dawn & Rajgopal, Shiva, 2011. "Is silence golden? An empirical analysis of firms that stop giving quarterly earnings guidance," Journal of Accounting and Economics, Elsevier, vol. 51(1-2), pages 134-150, February.
    5. Yilmazkuday, Hakan, 2022. "COVID-19 and Monetary policy with zero bounds: A cross-country investigation," Finance Research Letters, Elsevier, vol. 44(C).
    6. Caggiano, Giovanni & Castelnuovo, Efrem & Kima, Richard, 2020. "The global effects of Covid-19-induced uncertainty," Economics Letters, Elsevier, vol. 194(C).
    7. Chen, Shuping & Matsumoto, Dawn & Rajgopal, Shiva, 2011. "Is silence golden? An empirical analysis of firms that stop giving quarterly earnings guidance," Journal of Accounting and Economics, Elsevier, vol. 51(1), pages 134-150.
    8. HaiYue Liu & Aqsa Manzoor & CangYu Wang & Lei Zhang & Zaira Manzoor, 2020. "The COVID-19 Outbreak and Affected Countries Stock Markets Response," IJERPH, MDPI, vol. 17(8), pages 1-19, April.
    9. Kim, O & Verrecchia, Re, 1991. "Trading Volume And Price Reactions To Public Announcements," Journal of Accounting Research, Wiley Blackwell, vol. 29(2), pages 302-321.
    10. Yinghua Li & Liandong Zhang, 2015. "Short Selling Pressure, Stock Price Behavior, and Management Forecast Precision: Evidence from a Natural Experiment," Journal of Accounting Research, Wiley Blackwell, vol. 53(1), pages 79-117, March.
    11. Park, Jihwon & Sani, Jalal & Shroff, Nemit & White, Hal, 2019. "Disclosure incentives when competing firms have common ownership," Journal of Accounting and Economics, Elsevier, vol. 67(2), pages 387-415.
    12. repec:zbw:bofrdp:2020_011 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xie, Wenlan & Tian, Haowen, 2023. "The effect of the COVID-19 pandemic on corporate trade credit financing," Economics Letters, Elsevier, vol. 232(C).
    2. Filippo Vitolla & Vitiana L?Abate & Nicola Raimo & Arcangelo Marrone, 2024. "Gli effetti della pandemia da COVID-19 sulla disclosure aziendale. Un?analisi empirica nella prospettiva dell?Integrated Reporting," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2024(1), pages 155-177.
    3. Tian, Haowen & Wang, Junkai, 2024. "Navigating the storm: How the COVID-19 pandemic transformed the M&A landscape," Finance Research Letters, Elsevier, vol. 59(C).
    4. Lee, Eugenia Y. & Ha, Wonsuk, 2022. "Electronic voting and strategic disclosure before shareholder meetings," Economics Letters, Elsevier, vol. 219(C).
    5. Chen, Tianhao & Chiu, Peng-Chia & Wang, Yiqian, 2024. "Media sentiment and management earnings forecasts: Evidence from China," Finance Research Letters, Elsevier, vol. 60(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dayanandan, Ajit & Donker, Han & Karahan, Gökhan, 2017. "Do voluntary disclosures of bad news improve liquidity?," The North American Journal of Economics and Finance, Elsevier, vol. 40(C), pages 16-29.
    2. Thorsten Knauer & Christian Ledwig & Andreas Wömpener, 2012. "Zur Wertrelevanz freiwilliger Managementprognosen in Deutschland," Schmalenbach Journal of Business Research, Springer, vol. 64(2), pages 166-204, March.
    3. Thomas Bourveau & Yun Lou & Rencheng Wang, 2018. "Shareholder Litigation and Corporate Disclosure: Evidence from Derivative Lawsuits," Journal of Accounting Research, Wiley Blackwell, vol. 56(3), pages 797-842, June.
    4. Stephen A. Hillegeist & James P. Kavourakis & Matthew Pinnuck, 2023. "The association between quarter length, forecast errors, and firms’ voluntary disclosures," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(2), pages 1885-1918, June.
    5. Anil Arya & Ram N. V. Ramanan, 2023. "Endogenizing Discretion in Disclosures," Management Science, INFORMS, vol. 69(6), pages 3730-3747, June.
    6. Ruth V. Aguilera & Kurt A. Desender & Mónica López-Puertas Lamy & Jun Ho Lee, 2017. "The governance impact of a changing investor landscape," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(2), pages 195-221, February.
    7. Billings, Mary Brooke & Cedergren, Matthew C., 2015. "Strategic silence, insider selling and litigation risk," Journal of Accounting and Economics, Elsevier, vol. 59(2), pages 119-142.
    8. Agnes C. S. Cheng & Wenli Huang & Shaojun Zhang, 2020. "Major government customer and management earnings forecasts," Frontiers of Business Research in China, Springer, vol. 14(1), pages 1-20, December.
    9. Wang, Fengrong & Mbanyele, William & Muchenje, Linda, 2022. "Economic policy uncertainty and stock liquidity: The mitigating effect of information disclosure," Research in International Business and Finance, Elsevier, vol. 59(C).
    10. Kristian D. Allee & Theodore E. Christensen & Bryan S. Graden & Kenneth J. Merkley, 2021. "The Genesis of Voluntary Disclosure: An Analysis of Firms’ First Earnings Guidance," Management Science, INFORMS, vol. 67(3), pages 1914-1938, March.
    11. Cyrus Aghamolla & Carlos Corona & Ronghuo Zheng, 2021. "No reliance on guidance: counter‐signaling in management forecasts," RAND Journal of Economics, RAND Corporation, vol. 52(1), pages 207-245, March.
    12. Zachary Kaplan & Xiumin Martin & Yifang Xie, 2021. "Truncating Optimism," Journal of Accounting Research, Wiley Blackwell, vol. 59(5), pages 1827-1884, December.
    13. Jaehong Lee & Eunjoo Cho & Jong Sung Park, 2019. "Towards a More Transparent Disclosure for Corporate Sustainability: Focusing on the Regulation of Unfaithful Disclosure Designation," Sustainability, MDPI, vol. 11(22), pages 1-26, November.
    14. Wenqin Li & John Ziyang Zhang & Rong Ding, 2023. "Impact of Directors’ Network on Corporate Social Responsibility Disclosure: Evidence from China," Journal of Business Ethics, Springer, vol. 183(2), pages 551-583, March.
    15. Jing Chen & Michael J. Jung, 2016. "Activist hedge funds and firm disclosure," Review of Financial Economics, John Wiley & Sons, vol. 29(1), pages 52-63, April.
    16. Velásquez, Jorge Sepúlveda & Griñen, Pablo Tapia & Henríquez, Boris Pastén, 2022. "Emerging market dynamics in H1N1 and COVID-19 pandemics," Economics Letters, Elsevier, vol. 218(C).
    17. Tang, Michael & Zarowin, Paul & Zhang, Li, 2015. "How do analysts interpret management range forecasts?," Accounting, Organizations and Society, Elsevier, vol. 42(C), pages 48-66.
    18. Elaine Ying Wang & Hun‐Tong Tan, 2013. "The Effects of Guidance Frequency and Guidance Goal on Managerial Decisions," Journal of Accounting Research, Wiley Blackwell, vol. 51(3), pages 673-700, June.
    19. David Veenman & Patrick Verwijmeren, 2022. "The Earnings Expectations Game and the Dispersion Anomaly," Management Science, INFORMS, vol. 68(4), pages 3129-3149, April.
    20. Martineau, Charles, 2021. "Rest in Peace Post-Earnings Announcement Drift," SocArXiv z7k3p, Center for Open Science.

    More about this item

    Keywords

    COVID-19 pandemic; Information disclosure; Forecast precision; Forecast timeliness;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:217:y:2022:i:c:s0165176522002270. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.