COVID‐19 Disclosures and Market Uncertainty: Evidence from 10‐Q Filings

Hao, Jie; Pham, Viet Tuan

doi:10.1111/auar.12369

Cited by 17 publications

(7 citation statements)

References 67 publications

(127 reference statements)

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“…For example, the Securities and Exchange Commission (SEC) has continuously expressed concerns about the reliance of individual investors on messages and recommendations from online stock forums that do not convey value-relevant information(SEC, 2016(SEC, , 2017. Similar concerns are also expressed by regulators from other countries (e.g., Financial Conduct Authority, 2018;Hao & Pham, 2022;Pinnuck & Stevenson, 2021;Troshani & Rowbottom, 2021).…”

mentioning

confidence: 65%

Messages in online stock forums and stock price synchronicity: Evidence from China

Huang

Cao

et al. 2022

Accounting & Finance

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Online stock forums allow investors to share information and exchange opinions, which facilitates the incorporation of firm‐specific information into prices and reduces stock price synchronicity. However, prior research presents mixed evidence as to the value of messages in online forums. Using the information of the Eastmoney Guba online forum in China, we find a causal and negative relation between Guba messages and stock price synchronicity. The finding is robust after accounting for media reports and firm fixed effects and using both an instrumental variable analysis and an experimental design that exploits exogenous changes in the authenticity of Guba messages. We find the impact of Guba information is attributed to its roles in both information dissemination and investor interaction and is more pronounced for messages with a negative narrative tone. Additional tests suggest Guba messages improve firm information disclosure quality, reduce stock price crash risk and decrease stock return volatility synchronicity.

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mentioning

confidence: 65%

Messages in online stock forums and stock price synchronicity: Evidence from China

Huang

Cao

et al. 2022

Accounting & Finance

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“…Ademais, outros estudos evidenciaram como a divulgação pelas empresas listadas em bolsas de valores sobre riscos relacionados à Covid-19 têm sido incipientes em muitos aspectos (Loughran & McDonald, 2020;Hao & Pham, 2022;Brennan, Edgar & Power, 2022); assim como também ressaltam como a divulgação voluntária sobre esses riscos é capaz de reduzir a incerteza e a assimetria de informações para os investidores (Hao & Pham, 2022;Hao & Dong, 2022).…”

Section: Amanda Da Silva Lisboa and Thaís Alves Da Silvaunclassified

Evidenciação De Passivos Contingentes Durante A Pandemia De Covid-19: Análise do Atendimento ao Ofício Circular CVM/SNC/SEP 02/2020

Lisboa¹,

Silva²

2023

RC&C, Rev. Contab. Control.

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A pandemia do coronavírus criou um cenário econômico mundial. As medidas de isolamento social com o intuito de frear a disseminação do vírus, e a falta de perspectiva de melhora, trouxeram às organizações um aumento de riscos e incertezas acerca do negócio. Sabendo da dependência de eventos futuros para a concretização dos passivos contingentes, esse artigo, no escopo da Teoria dos Prospectos, teve por objetivo avaliar se, com o início da pandemia em 2020, houve aumento nos montantes de passivos contingentes divulgados, e se houve alteração na qualidade de sua evidenciação. Desse modo, os dados foram coletados a partir das demonstrações financeiras das empresas pertencentes aos setores mais prejudicados pela pandemia, conforme publicado no Diário Oficial da União, e analisados por meio de métodos quantitativos. Os resultados do estudo demonstraram que tanto antes quanto após o início da pandemia as contingências passivas mais representativas entre as empresas estudadas foram as de natureza Tributária, Cível e Trabalhista; e que nenhuma entidade atendeu a todos os requisitos de divulgação do CPC 25. Ainda, os resultados obtidos através das análises estatísticas não identificaram variação significativa na qualidade da divulgação nem no montante divulgado das contingências após o início da pandemia. Estes resultados contrariam a recomendação do Ofício Circular CVM/SNC/SEP 02/2020 que requer aprimoramento da divulgação de passivos contingentes em decorrência da crise sanitária, o que indica possíveis falhas quanto à divulgação de riscos potenciais, e consequentemente interferência no processo decisório dos usuários da informação contábil.

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“…Hao and Pham (2022) analyzed 7,895 Form 10-Q disclosed during the COVID-19 pandemic in 2020 and explored the relationship between corporate disclosure content and market uncertainty. The regression equations were developed and tested, including the variables like COVID-19-related keywords, positive and negative keywords, earning surprise of the current quarter, predictions of market analysts and so on.…”

Section: Literature Reviewmentioning

confidence: 99%

Do SEC filings indicate any trends? Evidence from the sentiment distribution of forms 10-K and 10-Q with FinBERT

Kim

Lee

Yoo

2023

DTA

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PurposeThis study quantified companies' views on the COVID-19 pandemic with sentiment analysis of US public companies' disclosures. The study aims to provide timely insights to shareholders, investors and consumers by exploring sentiment trends and changes in the industry and the relationship with stock price indices.Design/methodology/approachFrom more than 50,000 Form 10-K and Form 10-Q published between 2020 and 2021, over one million texts related to the COVID-19 pandemic were extracted. Applying the FinBERT fine-tuned for this study, the texts were classified into positive, negative and neutral sentiments. The correlations between sentiment trends, differences in sentiment distribution by industry and stock price indices were investigated by statistically testing the changes and distribution of quantified sentiments.FindingsFirst, there were quantitative changes in texts related to the COVID-19 pandemic in the US companies' disclosures. In addition, the changes in the trend of positive and negative sentiments were found. Second, industry patterns of positive and negative sentiment changes were similar, but no similarities were found in neutral sentiments. Third, in analyzing the relationship between the representative US stock indices and the sentiment trends, the results indicated a positive relationship with positive sentiments and a negative relationship with negative sentiments.Originality/valuePerforming sentiment analysis on formal documents like Securities and Exchange Commission (SEC) filings, this study was differentiated from previous studies by revealing the quantitative changes of sentiment implied in the documents and the trend over time. Moreover, an appropriate data preprocessing procedure and analysis method were presented for the time-series analysis of the SEC filings.

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COVID‐19 Disclosures and Market Uncertainty: Evidence from 10‐Q Filings

Cited by 17 publications

References 67 publications

Messages in online stock forums and stock price synchronicity: Evidence from China

Messages in online stock forums and stock price synchronicity: Evidence from China

Evidenciação De Passivos Contingentes Durante A Pandemia De Covid-19: Análise do Atendimento ao Ofício Circular CVM/SNC/SEP 02/2020

Do SEC filings indicate any trends? Evidence from the sentiment distribution of forms 10-K and 10-Q with FinBERT

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