Electronic Resource
Article - Textual Complexity in Nonperiodic Disclosures and Investors’ Use of Social Media as an Alternative Channel for Corporate Information
Textual complexity within corporate disclosures may reduce investors'
comprehension of those disclosures. However, investors can rely on alternative
sources of information to process textually complex disclosures. Unlike periodic
disclosures, where various alternative sources (e.g., analysts and news media reports)
are available to investors, there are limited alternative sources for unanticipated
nonperiodic disclosures. Social media is one such source and has been shown to
facilitate retail investors' access to information for investment decision-making. This
leads to the question of how effective social media are for processing textually
complex nonperiodic disclosures.
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