Paper: SSRN 1089447

Abstract

Prior research assumes that discretionary disclosures either (a) contribute to useful decision making by overcoming information asymmetries between managers and

Complexity vs Empirical Score

  • Math Complexity: 2.0/10
  • Empirical Rigor: 3.0/10
  • Quadrant: Philosophers — conceptual discussion, limited math and data

Why this score: The paper is a literature review synthesizing prior accounting research, focusing on taxonomies and theoretical frameworks (low math complexity) without original data analysis, backtests, or implementation details (low empirical rigor).

Research Flowchart

  flowchart TD
  A["Research Goal: Do discretionary disclosures inform investors or manage impressions?"] --> B["Method: Content analysis of corporate narratives<br/>Quantifies information vs. sentiment scores"]
  B --> C["Data: 10-K filings / MD&A sections<br/>Market data for price impact"]
  C --> D["Computational Process: Textual analysis &<br/>Regression of scores on market microstructure metrics"]
  D --> E{"Outcomes"}
  E --> F["Information Effect: Reduced information asymmetry<br/>correlates with information scores"]
  E --> G["Impression Management Effect: Low-content, high-sentiment<br/>disclosures show limited price impact"]