The causal effect of improved readability of financial reporting on stock price crash risk: Evidence from the Plain Writing Act of 2010

Yin, Shiyan; Chevapatrakul, Thanaset; Yao, Kai

doi:10.1016/j.econlet.2022.110614

All Outputs (3)

Shock transmissions and business linkages among US sectors (2022)
Journal Article

This paper examines the shock spillovers between US sectors and their dependence on the intersectoral business linkages. Our forecast error variance decompositions reveal significant shock transmissions among trading sectors, especially in turbulent... Read More about Shock transmissions and business linkages among US sectors.

Default risk, macroeconomic conditions, and the market skewness risk premium (2022)
Journal Article

Previous literature finds that stocks with low market skewness risk outperform stocks with high market skewness risk. Using the portfolio sort approach, we show that this market skewness risk premium is much more pronounced among stocks with low defa... Read More about Default risk, macroeconomic conditions, and the market skewness risk premium.

The causal effect of improved readability of financial reporting on stock price crash risk: Evidence from the Plain Writing Act of 2010 (2022)
Journal Article

This paper shows that obfuscating financial reports leads to an increase in the risk of stock price crash. Exploiting the Plain Writing Act of 2010 (PWA) as the exogenous source of variation, the results of the difference-in-differences (DID) estimat... Read More about The causal effect of improved readability of financial reporting on stock price crash risk: Evidence from the Plain Writing Act of 2010.