Managers' Strategic Use of Concurrent Disclosure: Evidence from 8-K Filings and Press Releases Academic Article uri icon


  • ABSTRACT This study examines managers strategic use of concurrent disclosures around the announcement of negative material events. We predict and find that managers disclosing negative 8-K news are more likely to issue a concurrent press release about an unrelated event relative to a press release providing additional context for the 8-Ktriggering event in order to increase investor information processing costs. This strategy appears distinct from the bundling of news to deter litigation. We find that managers more commonly issue concurrent unrelated press releases when they have stronger incentives to impede the pricing of negative information and that doing so is associated with a reduction in the speed with which prices reflect the news. Our findings shed light on a previously unexplored tool managers use to exploit investors processing capacity constraints to hide negative news. JEL Classifications: G12; G14; M41; M48.

published proceedings


altmetric score

  • 64.28

author list (cited authors)

  • Rawson, C., Twedt, B. J., & Watkins, J. C.

citation count

  • 7

complete list of authors

  • Rawson, Caleb||Twedt, Brady J||Watkins, Jessica C

publication date

  • July 2023