Strategic Corporate Disclosure Under a Demand Shock : Evidence from the Lehman Brothers Bond Index Rating Redefinition
Research output: Conference Papers (RGC: 31A, 31B, 32, 33) › 32_Refereed conference paper (no ISBN/ISSN) › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
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| Publication status | Published - 7 Jul 2017 |
Conference
| Title | 29th Asian Finance Association Annual Conference 2017 |
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| Location | Conrad Hotel |
| Place | Korea, Republic of |
| City | Seoul |
| Period | 6 - 8 July 2017 |
Link(s)
| Permanent Link | https://scholars.cityu.edu.hk/en/publications/publication(0f41118f-8294-4a9f-92ba-5bb50ec5c032).html |
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Abstract
We examine the smoothing effect of voluntary disclosure using an exogenous demand shock in the bond market. The Lehman Brothers bond index rating redefinition of 2005 resulted in unexpected rating and demand changes for certain bonds without any change in firm fundamentals. We find that managers strategically provide management forecasts with more negative (positive) information in response to unexpected rating upgrades (downgrades) resulting from the redefinition. This result is more pronounced for bond financing-dependent firms and financially constrained firms. Our findings are robust to alternative measures, explanations and other types of news disclosure.
Bibliographic Note
Research Unit(s) information for this publication is provided by the author(s) concerned.
Citation Format(s)
Strategic Corporate Disclosure Under a Demand Shock : Evidence from the Lehman Brothers Bond Index Rating Redefinition. / Lin, Yupeng; WU, Haibin.
2017. Paper presented at 29th Asian Finance Association Annual Conference 2017, Seoul, Korea, Republic of.Research output: Conference Papers (RGC: 31A, 31B, 32, 33) › 32_Refereed conference paper (no ISBN/ISSN) › peer-review
