Search
Program Calendar
Browse By Day
Search Tips
Virtual Exhibit Hall
Personal Schedule
Sign In
This study exploits the interstate bank branching deregulation as a natural experiment to investigate the impact of bank competition on managers’ asymmetric disclosure. I expect that as firms possess greater bargaining power in debt contracting and have more opportunities to obtain debt financing following the banking deregulation, managers are more likely to withhold bad news relative to good news. Consistent with my prediction, I find that firms reduce the timeliness of bad news disclosures, and the effect is more pronounced in states with fewer interstate branching restrictions than states with more restrictions. The results suggest that bank competition plays a significant role in affecting managers’ voluntary disclosure decisions.