Negative peer disclosure

Sean Shun Cao, Vivian W. Fang, Lijun (Gillian) Lei

Research output: Contribution to journalArticlepeer-review

2 Scopus citations


This paper provides first evidence of negative peer disclosure (NPD), an emerging corporate strategy to publicize adverse news of industry peers on social media. Consistent with NPDs being implicit positive self-disclosures, disclosing firms experience a two-day abnormal return of 1.6–1.7% over the market and industry. Further exploring the benefits and costs of such disclosures, we find that NPD propensity increases with the degree of product market rivalry and technology proximity and disclosing firms outperform nondisclosing peers in the product markets in the year following NPDs. These results rationalize peer disclosure and extend the scope of the literature beyond self-disclosure.

Original languageEnglish (US)
Pages (from-to)815-837
Number of pages23
JournalJournal of Financial Economics
Issue number3
StatePublished - Jun 1 2021
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2021 Elsevier B.V.


  • Peer disclosure
  • Product market rivalry
  • Social media
  • Spillover
  • Technology proximity


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