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With a Grain of Salt: Investor Reactions to Uncertain News and (Non)disclosure

Jonathan A. Libgober, Beatrice Michaeli, and Elyashiv Wiedman

Journal of Accounting and Economics · 2026, 81(1): 101862

Uncertainty about whether external news is accurate creates an incentive for managers to delay disclosure decision. A consequence is that the market's expectation of firm value may worsen with better news.