Corporate News Disclosure and Competitive Advantage: What Factors Influence on S&P 500 Companies’ Competitive Advantage During 2022 Economic Crisis?
Main Article Content
Abstract
This paper aims to explore corporate news related to the topic of the competitive advantage of S&P 500 companies in the period of the economic crisis in 2022. The observed companies are the biggest US companies listed on the New York Stock Exchange (NYSE). The computerized qualitative analyses were done on 200 corporate news from January 2022 until November 2022, with 13,361 pages and 5,294,836 words. The research results prove that the US biggest companies disclosure intensively in public about their competitive advantage with 90.29% including text samples from initial corpus text. The companies disclosure about 4 main topics (factors) during this year’s crisis: (1) profitability; (2) financial market performance; (3) products and services; (4) top management leadership. The research article contributes to the current literature on competitive advantage narratives, how the biggest companies tend to achieve competitive advantage during the economic crisis and address messages to their stakeholders. These messages could be of the highest importance mostly because of existing uncertainties and high levels of risks.
Article Details
Section
Once the manuscript is accepted for publication, authors shall transfer the copyright to the publisher. If the submitted manuscript is not accepted for printing by the journal, the authors shall retain all their rights. The following rights on the manuscript are transferred to the publisher, including any supplementary materials and any parts, extracts or elements of the manuscript:
- the right to reproduce and distribute the manuscript in printed form, including print-on-demand;
- the right to print prepublications, reprints and special editions of the manuscript;
- the right to translate the manuscript into other languages;
- the right to reproduce the manuscript using photomechanical or similar means including, but not limited to photocopy, and the right to distribute these copies;
- the right to reproduce and distribute the manuscript electronically or optically using and all data carriers or storage media, and especially in machine readable/digitalized form on data carriers such as hard drive, CD-ROM, DVD, Blu-ray Disc (BD), Mini Disc, data tapes, and the right to reproduce and distribute the article via these data carriers;
- the right to store the manuscript in databases, including online databases, as well as the right to transmit the manuscript in all technical systems and modes;
- the right to make the manuscript available to the public or to closed user groups on individual demand, for use on monitors or other readers (including e-books), and in printable form for the user, either via the Internet, online service, or via internal or external networks.
References
Albertini, E. (2021). What are the environmental capabilities, as components of sustainable intellectual capital, that matter to the CEOs of European companies? Journal of Intellectual Capital, 22(5), 918–937. https://doi.org/10.1108/JIC-06-2020-0215
Albertini, E., Berger-Remy, F., Lefrancq, S., Morgana, L., Petković, M., & Walliser, E. (2021). Voluntary disclosure and intellectual capital: How CEOs mobilize discretionary accounting narratives to account for value creation stemming from intellectual capital. Journal of Applied Accounting Research, 22(4), 687–705. https://doi.org/10/gjkvwf
Albuquerque, R., Koskinen, Y., Yang, S., & Zhang, C. (2020). The resiliency of Environmental and Social Stocks: An Analysis of the Exogenous COVID-19 Market Crash. The Review of Corporate Finance Studies, 9(3), 593–621. https://doi.org/10.1093/rcfs/cfaa011
Aman, H., & Moriyasu, H. (2022). Effect of corporate disclosure and press media on market liquidity: Evidence from Japan. International Review of Financial Analysis, 82, 102167. https://doi.org/10.1016/j.irfa.2022.102167
Aversa, D., Adamashvili, N., Fiore, M., & Spada, A. (2022). Scoping Review (SR) via Text Data Mining on Water Scarcity and Climate Change. Sustainability, 15(1), 70. https://doi.org/10.3390/su15010070
Baker, S. R., Bloom, N., Davis, S. J., Kost, K., Sammon, M., & Viratyosin, T. (2020). The Unprecedented Stock Market Reaction to COVID-19. The Review of Asset Pricing Studies, 10(4), 742–758. https://doi.org/10.1093/rapstu/raaa008
Berman, M. G., Stier, A. J., & Akcelik, G. N. (2019). Environmental neuroscience. American Psychologist, 74(9), 1039–1052. https://doi.org/10.1037/amp0000583
Bodnaruk, A., Loughran, T., & McDonald, B. (2015). Using 10-K Text to Gauge Financial Constraints. Journal of Financial and Quantitative Analysis, 50(4), 623–646. https://doi.org/10.1017/S0022109015000411
Boubaker, S., Liu, Z., & Zhan, Y. (2022). Customer relationships, corporate social responsibility, and stock price reaction: Lessons from China during health crisis times. Finance Research Letters, 47, 102699. https://doi.org/10.1016/j.frl.2022.102699
Burdekin, R. C. K., & Tao, R. (2021). The golden hedge: From global financial crisis to a global pandemic. Economic Modelling, 95, 170–180. https://doi.org/10.1016/j.econmod.2020.12.009
Campbell, J. L., Chen, H., Dhaliwal, D. S., Lu, H., & Steele, L. B. (2014). The information content of mandatory risk factor disclosures in corporate filings. Review of Accounting Studies, 19(1), 396–455. https://doi.org/10.1007/s11142-013-9258-3
Ding, W., Levine, R., Lin, C., & Xie, W. (2021). Corporate immunity to the COVID-19 pandemic. Journal of Financial Economics, 141(2), 802–830. https://doi.org/10.1016/j.jfineco.2021.03.005
Dou, Y., Cosentino, F., Malek, Z., Maiorano, L., Thuiller, W., & Verburg, P. H. (2021). A new European land systems representation accounting for landscape characteristics. Landscape Ecology, 36(8), 2215–2234. https://doi.org/10.1007/s10980-021-01227-5
Einwiller, S. A., & Carroll, C. E. (2020). Negative disclosures in corporate social responsibility reporting. Corporate Communications: An International Journal, 25(2), 319–337. https://doi.org/10.1108/CCIJ-05-2019-0054
Goulart, G. D. S., Weber, A. F., & Porto, R. B. (2020). Desempenho Mercadológico no Mercado de Alta Tecnologia: Uma Revisão Sistemática. Internext, 15(1), 37. https://doi.org/10.18568/internext.v15i1.535
Hasan, M. M., & Cheung, A. (Wai-K. (2018). Organization capital and firm life cycle. Journal of Corporate Finance, 48, 556–578. https://doi.org/10.1016/j.jcorpfin.2017.12.003
Heinberg, M., Ozkaya, H. E., & Taube, M. (2018). Do corporate image and reputation drive brand equity in India and China? - Similarities and differences. Journal of Business Research, 86, 259–268. https://doi.org/10.1016/j.jbusres.2017.09.018
Higgins, C., Tang, S., & Stubbs, W. (2020). On managing hypocrisy: The transparency of sustainability reports. Journal of Business Research, 114, 395–407. https://doi.org/10.1016/j.jbusres.2019.08.041
Huang, Y., Yang, S., & Zhu, Q. (2021). Brand equity and the Covid-19 stock market crash: Evidence from U.S. listed firms. Finance Research Letters, 43, 101941. https://doi.org/10.1016/j.frl.2021.101941
International Monetary Fund (IMF). (2022). Retrieved February 9, 2023, from https://www.imf.org/external/pubs/ft/ar/2022/
Jackson, G., Bartosch, J., Avetisyan, E., Kinderman, D., & Knudsen, J. S. (2020). Mandatory Non-financial Disclosure and Its Influence on CSR: An International Comparison. Journal of Business Ethics, 162(2), 323–342. https://doi.org/10.1007/s10551-019-04200-0
Kim, J., Lim, J.-H., & Yoon, K. (2022). How do the content, format, and tone of Twitter-based corporate disclosure vary depending on earnings performance? International Journal of Accounting Information Systems, 47, 100574. https://doi.org/10.1016/j.accinf.2022.100574
Kravet, T., & Muslu, V. (2013). Textual risk disclosures and investors’ risk perceptions. Review of Accounting Studies, 18(4), 1088–1122. https://doi.org/10.1007/s11142-013-9228-9
Lee, W.-J. (2020). A Study on Word Cloud Techniques for Analysis of Unstructured Text Data. The Journal of the Convergence on Culture Technology, 6(4), 715–720. https://doi.org/10.17703/JCCT.2020.6.4.715
Li, Y., Dai, J., & Cui, L. (2020). The impact of digital technologies on economic and environmental performance in the context of industry 4.0: A moderated mediation model. International Journal of Production Economics, 229, 107777. https://doi.org/10.1016/j.ijpe.2020.107777
Liu, Y., Heinberg, M., Huang, X., & Eisingerich, A. B. (2022). Building a competitive advantage based on transparency: When and why does transparency matter for corporate social responsibility? Business Horizons, S0007681322001306. https://doi.org/10.1016/j.bushor.2022.10.004
Liu, Y., Heinberg, M., Huang, X., & Eisingerich, A. B. (2022). Building a competitive advantage based on transparency: When and why does transparency matter for corporate social responsibility? Business Horizons, S0007681322001306. https://doi.org/10.1016/j.bushor.2022.10.004
Loughran, T., & Mcdonald, B. (2011). When Is a Liability Not a Liability? Textual Analysis, Dictionaries, and 10-Ks. The Journal of Finance, 66(1), 35–65. https://doi.org/10.1111/j.1540-6261.2010.01625.x
Nemlioglu, I., & Mallick, S. K. (2020). Do innovation-intensive firms mitigate their valuation uncertainty during bad times? Journal of Economic Behavior & Organization, 177, 913–940. https://doi.org/10.1016/j.jebo.2020.06.004
Odders-White, E. R., & Ready, M. (2008). Credit Ratings and Stock Liquidity (SSRN Scholarly Paper No. 900709). https://papers.ssrn.com/abstract=900709
Ozik, G., & Sadka, R. (2013). Media Coverage and Hedge Fund Returns. Financial Analysts Journal, 69(3), 57–75. https://doi.org/10.2469/faj.v69.n3.1
Peschel, A. O., & Aschemann-Witzel, J. (2020). Sell more for less or less for more? The role of transparency in consumer response to upcycled food products. Journal of Cleaner Production, 273, 122884. https://doi.org/10.1016/j.jclepro.2020.122884
Petković, M. (2022). What Do the Biggest US Banks Disclosure About Green Intellectual Capital during the Period of COVID-19 Crisis? Ecologica, 29(107), 315–323. https://doi.org/10.18485/ecologica.2022.29.107.3
Petković, M., Knežević, G., & Pavlović, V. (2020). Where did the competitive advantage of French wineries come from? Insight into the effect of intellectual capital structure on financial performances. Custos e Agronegocio, 16(3), 19.
Petković, M., Krstić, B., & Rađenović, T. (2020). Accounting-based valuation methods of intangible assets: Theoretical overview. Ekonomika, 66(1), 1–12. https://doi.org/10.5937/ekonomika2001001P
Ratinaud, P. (2014). IRAMUTEQ: Interface de R pour les Analyses Multidimensionnelles de Textes et de Questionnaires—0.7 alpha 2. http://www.iramuteq.org/
Sakas, D., Vlachos, D., & Nasiopoulos, D. (2014). Modeling strategic management for the development of competitive advantage, based on technology. Journal of Systems and Information Technology, 16(3), 187–209. https://doi.org/10.1108/JSIT-01-2014-0005
Souza, M. A. R. de, Wall, M. L., Thuler, A. C. de M. C., Lowen, I. M. V., & Peres, A. M. (2018). O uso do software IRAMUTEQ na análise de dados em pesquisas qualitativas. Revista Da Escola de Enfermagem Da USP, 52(0). https://doi.org/10.1590/s1980-220x2017015003353
Tetlock, P. C. (2007). Giving Content to Investor Sentiment: The Role of Media in the Stock Market. The Journal of Finance, 62(3), 1139–1168. https://doi.org/10.1111/j.1540-6261.2007.01232.x
Tetlock, P. C., Saar-Tsechansky, M., & Macskassy, S. (2008). More Than Words: Quantifying Language to Measure Firms’ Fundamentals. The Journal of Finance, 63(3), 1437–1467. https://doi.org/10.1111/j.1540-6261.2008.01362.x
The Reinert Method for Textual Data Clustering. (2023). Retrieved February 9, 2023, from https://juba.github.io/rainette/
Tsai, F.-T., Lu, H.-M., & Hung, M.-W. (2016). The impact of news articles and corporate disclosure on credit risk valuation. Journal of Banking & Finance, 68, 100–116. https://doi.org/10.1016/j.jbankfin.2016.03.018
Uddin, M. R., Hasan, M. M., & Abadi, N. (2022). Do intangible assets provide corporate resilience? New evidence from infectious disease pandemics. Economic Modelling, 110, 105806. https://doi.org/10.1016/j.econmod.2022.105806
Uygur, O. (2019). Income inequality in S&P 500 companies. The Quarterly Review of Economics and Finance, 72, 52–64. https://doi.org/10.1016/j.qref.2018.11.007
Wang, Z., Bouri, E., Ferreira, P., Shahzad, S. J. H., & Ferrer, R. (2022). A grey-based correlation with multi-scale analysis: S&P 500 VIX and individual VIXs of large US company stocks. Finance Research Letters, 48, 102872. https://doi.org/10.1016/j.frl.2022.102872