Misinformation corrections of corporate news: Corporate clarification announcements

摘要

We study the effect of decision making through misinformation correction of financial news through corporate clarification announcements. We adopt the quantile regression method and use signal detection theory for the study period 2008 to 2018. Misinformation corrections significantly influence the buy- and sell-side trading of qualified foreign institutional investors (Qfii), investment trust companies (Trust), and dealers across quantiles. Misinformation corrections with identified sources have a significant negative influence on institutional investors' decision making across quantiles, whereas those without identified sources show mixed influences. Brief and long-length written clarifications have a significant positive influence on misinformation correction for decision making across quantiles, while those of mid-length have a contrary effect at low and mid quantiles. Misinformation correction in newspapers has a significant negative influence on decision making, but financial newspapers and other sources show the contrary. Multi-purpose newspapers negatively and significantly influence misinformation correction, whereas economic newspapers display insignificant influences. Investment and retained-earnings related clarifications, negatively and positively, significantly influence misinformation correction for decision making, respectively. While technology-related industries indicate positive information signaling and learning from other sources and retained-earnings related clarifications, their counterparts show the opposite from financial newspapers and investment related clarifications. This study identifies the influence of misinformation correction by relating source monitoring and textual analysis. Information signaling has a more significant influence than information learning for the overall market, whereas the contrary is observed for industry segmentations. This study sheds light on misinformation correction strategies and methods. This study sheds light on misinformation correction strategies and methods.