Are There Externalities of Private Firm News Disclosure? Evidence from Public Firms’ Investment
研究美国1996-2018年数据发现，私人企业自愿新闻披露会显著提高同行业公共企业的投资敏感性，且这种效应在行业预期回报波动大、本地报纸覆盖少的行业中更强。
ABSTRACT This study examines whether and how voluntary news disclosure made by private firms affects investment sensitivities of public peer firms. Analyzing data from U.S. public firms from 1996 to 2018, we discover that public firms’ investment sensitivities intensify in industries with active private firm disclosures; a one standard deviation increase in private firm news disclosure raises public firms’ investment sensitivities by 14.5–17.6 percent. To mitigate endogeneity, we employ instrumental-variable methods, leveraging the staggered implementation of prudent investor rules and enforceability of noncompete agreements. Our results show that these effects are magnified in industries marked by the higher expected industry return volatility and less local newspaper coverage. We find that news from private firms significantly enhances public firms’ investment sensitivities, regardless of its sentiment. This research highlights the crucial role of private firm disclosures in influencing public firms’ investment decisions, enhancing our understanding of information spillovers in corporate disclosure. JEL Classifications: D80; G31; G32; M41.