Dang, M., Puwanenthiren, P., Henry, D., Mieszko, M. and Toan, N.M. 2022. Does managerial tone matter for stock liquidity? Evidence from textual disclosures . Finance Research Letters. 48 102917. https://doi.org/10.1016/j.frl.2022.102917
| Title | Does managerial tone matter for stock liquidity? Evidence from textual disclosures |
|---|---|
| Type | Journal article |
| Authors | Dang, M., Puwanenthiren, P., Henry, D., Mieszko, M. and Toan, N.M. |
| Abstract | This study investigates the effect of managerial tone on stock liquidity using a sample of U.S.-listed firms over the 1994-2019 period. We find that firms with SEC filings exhibiting more positive managerial tone experience higher stock liquidity. Our findings remain unchanged after controlling for firm fixed effects, propensity score matching, and using alternative variable approaches. Further, we identify that the relationship is less pronounced during times of high policy uncertainty measured by EPU and presidential elections. Overall, this paper provides evidence that the management tone in SEC filings has price discovery and efficiency implications for investor trading decisions. |
| Keywords | Management tone |
| textual disclosures | |
| stock liquidity | |
| policy uncertainty | |
| propensity score matching | |
| Article number | 102917 |
| Journal | Finance Research Letters |
| Journal citation | 48 |
| ISSN | 1544-6123 |
| 1544-6131 | |
| Year | 2022 |
| Publisher | Elsevier |
| Accepted author manuscript | License CC BY-NC-ND 4.0 File Access Level Open (open metadata and files) |
| Digital Object Identifier (DOI) | https://doi.org/10.1016/j.frl.2022.102917 |
| Publication dates | |
| Published | 25 Apr 2022 |