Lexical similarity in corporate announcements and its valuation impact: Evidence from profit warnings in Hong Kong
Ms. Xu Xin
PhD student in Finance
FBA, UM
Date: 23 September 2024 (Monday)
Time: 13:00 to 14:00pm
Venue: FBA Lobby
Abstract
We examine the financial impact of lexical similarity in bilingual financial disclosures in the context of profit warnings issued by Hong Kong-listed companies. We find that the degree of lexical similarity between the Chinese and English versions of profit warnings is negatively associated with corporate governance and financial health. We also show that the lexical similarity is related to the tone of the warnings, the use of boilerplate sentences, and the direction of translation between languages. The stock price reacts relatively positively to the lower lexical similarity, and this positive reaction is not reversed afterward.
Speaker
Xin Xu is a PhD student in finance who is currently studying at the University of Macau. Her research interests include corporate governance, policy uncertainty, financial report, and the corporate finance.
All are welcome!
