The effects of forward-looking customer-specific textual information on supplier’s perceived future stock crash risk
Prof. Monica CHEN
Assistant Professor in Accounting
FBA, UM
Date: 12 March (Tuesday)
Time: 1:00pm to 2:00pm
Venue: FBA Lobby
Abstract
The voluntary management forecast report (MFR) is arguably one of the most important sources of forward-looking information for outside investors, suppliers, analysts, and other stakeholders. In this study, we investigate the effects of firm-specific textual content in major customer’s MFRs on the investors’ assessment of a supplier’s future stock price crash risk. We find that the amount of forward-looking firm-specific textual information in a customer’s MFR is negatively and significantly related to the perceived future stock price crash risk of its supplier firm. Such negative impacts are stronger when the textual and numerical information contained in MFRs are consistent in terms of contents and when such MFR has better textual quality. Our findings reveal the relevance and importance of forward-looking customer-specific textual information along the supply chain.
Speaker
Dr. Chen got Ph.D. in accounting from City University of Hong Kong in 2016. She currently is assistant professor in Accounting in the University of Macau. Dr. Chen has research interests in areas: textual analysis of corporate disclosures, data mining and big data, supply chain, and corporate governance, etc.
All are welcome!
