Management Behavior: Strategic Silence and Litigation
Episode Description
Research by Wharton’s Matthew Cedergren finds that plaintiffs considering a lawsuit against a firm give serious weight to whether the manager went above and beyond normal reporting requirements. More: http://knlg.net/1NJEoCX 📂 Finance & Accounting 🏷️ Research
Brief Summary
Managers' disclosure behaviors affect litigation risks, with strategic silence linked to insider selling and earnings disappointments.
Key points
- Behavior Strategic Silence. Managers are less likely to warn about disappointing earnings if they sell shares first.
