AccSus Research Seminar with Hui Chen (University of Zurich)

We were pleased to welcome Hui Chen (University of Zurich) to the AccSus Research Seminar Series. Hui presented joint work with Jan Schneemeier, More Feedback, Less Learning: The Disclosure Trap.

The paper examines how corporate disclosure affects managers’ ability to learn from financial markets. The authors show that while more precise disclosure attracts informed trading and makes stock prices more informative, it can also discourage managers from using the information embedded in prices. As a result, managerial learning may decline even as market prices become more informative. The study further highlights how disclosure mandates can unintentionally reduce firm value by limiting managers’ incentives to learn from market feedback.

We also thank the TRR 266 Accounting for Transparency for supporting the seminar series.

Many thanks to Hui for an insightful presentation and to all participants for the engaging discussion and exchange of ideas.