IDEAS home Printed from https://ideas.repec.org/a/taf/euract/v34y2025i2p695-720.html
   My bibliography  Save this article

Disclosure Tone and Short-Selling Pressure: Evidence from Regulation-SHO

Author

Listed:
  • Ankit Jain

Abstract

Managers use disclosure tone as a strategic tool to manage investors’ expectations and demand for information. I provide evidence that investors’ actions can, in turn, exercise a disciplining effect on tone management. Using exogenous relaxation in the short-selling constraints from Regulation-SHO and employing the difference-in-differences design on a propensity-score matched sample, I find that short-selling pressure reduces tone management. Greater short- selling pressure results in less optimism in tone unrelated to fundamentals, and in disclosures about the future rather than the past. Moreover, this reduction in tone management is stronger for firms with higher short-selling constraints pre-Regulation-SHO and for those with overoptimistic and overconfident managers.

Suggested Citation

  • Ankit Jain, 2025. "Disclosure Tone and Short-Selling Pressure: Evidence from Regulation-SHO," European Accounting Review, Taylor & Francis Journals, vol. 34(2), pages 695-720, March.
  • Handle: RePEc:taf:euract:v:34:y:2025:i:2:p:695-720
    DOI: 10.1080/09638180.2023.2270655
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09638180.2023.2270655
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/09638180.2023.2270655?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:euract:v:34:y:2025:i:2:p:695-720. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/REAR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.