Management tone and corporate information asymmetry in times of pandemic crisis

Yang Wang; Xin  Chen; Yifei Zhang

doi:10.1016/j.intaccaudtax.2025.100708

Management tone and corporate information asymmetry in times of pandemic crisis

Yang Wang
, Xin Chen
, Yifei Zhang (Lead / Corresponding author)

Research output: Contribution to journal › Article › peer-review

5 Citations (Scopus)

210 Downloads (Pure)

Abstract

In this paper, we study the impact of management tones on corporate information asymmetry at earnings communication conferences during China's COVID-19 outbreak. We show that firms’ information asymmetry was reduced when management used more positive tones. This positive effect was more pronounced for firms in those regions more affected by the pandemic, when participants raised more questions, or when the Chief Executive Officers attended at these conferences. We argue that an internet search is a channel through which management tones reduce information asymmetry. Our paper sheds light on the importance of management tones during a crisis and highlights the positive roles that top management engagement and conference participants’ activism play in the information environment.

Original language	English
Article number	100708
Number of pages	19
Journal	Journal of International Accounting, Auditing and Taxation
Volume	59
Early online date	13 Jun 2025
DOIs	https://doi.org/10.1016/j.intaccaudtax.2025.100708
Publication status	Published - Dec 2025

Keywords

COVID-19
Crisis
Earnings communication conferences
Information asymmetry
Management tones

ASJC Scopus subject areas

Accounting
Finance

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10.1016/j.intaccaudtax.2025.100708Licence: CC BY-NC

Final Published VersionFinal published version, 935 KBLicence: CC BY-NC

Cite this

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title = "Management tone and corporate information asymmetry in times of pandemic crisis",

abstract = "In this paper, we study the impact of management tones on corporate information asymmetry at earnings communication conferences during China's COVID-19 outbreak. We show that firms{\textquoteright} information asymmetry was reduced when management used more positive tones. This positive effect was more pronounced for firms in those regions more affected by the pandemic, when participants raised more questions, or when the Chief Executive Officers attended at these conferences. We argue that an internet search is a channel through which management tones reduce information asymmetry. Our paper sheds light on the importance of management tones during a crisis and highlights the positive roles that top management engagement and conference participants{\textquoteright} activism play in the information environment.",

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AU - Chen, Xin

AU - Zhang, Yifei

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N2 - In this paper, we study the impact of management tones on corporate information asymmetry at earnings communication conferences during China's COVID-19 outbreak. We show that firms’ information asymmetry was reduced when management used more positive tones. This positive effect was more pronounced for firms in those regions more affected by the pandemic, when participants raised more questions, or when the Chief Executive Officers attended at these conferences. We argue that an internet search is a channel through which management tones reduce information asymmetry. Our paper sheds light on the importance of management tones during a crisis and highlights the positive roles that top management engagement and conference participants’ activism play in the information environment.

AB - In this paper, we study the impact of management tones on corporate information asymmetry at earnings communication conferences during China's COVID-19 outbreak. We show that firms’ information asymmetry was reduced when management used more positive tones. This positive effect was more pronounced for firms in those regions more affected by the pandemic, when participants raised more questions, or when the Chief Executive Officers attended at these conferences. We argue that an internet search is a channel through which management tones reduce information asymmetry. Our paper sheds light on the importance of management tones during a crisis and highlights the positive roles that top management engagement and conference participants’ activism play in the information environment.

KW - COVID-19

KW - Crisis

KW - Earnings communication conferences

KW - Information asymmetry

KW - Management tones

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DO - 10.1016/j.intaccaudtax.2025.100708

M3 - Article

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VL - 59

JO - Journal of International Accounting, Auditing and Taxation

JF - Journal of International Accounting, Auditing and Taxation

M1 - 100708

ER -

Management tone and corporate information asymmetry in times of pandemic crisis

Abstract

Keywords

ASJC Scopus subject areas

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