On the same day a publicly traded company files a negative report with the Securities and Exchange Commission (SEC), it is more likely to issue a press release touting unrelated news. This strategic move aims to diver…

Researchers at the University of Notre Dame and the University of Arkansas studied thousands of 8-K filings and accompanying press releases between 2005 and 2018. They found that companies disclosing negative informat…

The researchers examined close to 50,000 non-earnings-related 8-K filings where the firm also issued a news release on the same day. One-third of the filings in their sample had an accompanying press release focused o…

The study classified the public 8-K disclosures as "good" or "bad" news and used textual analysis to identify whether the press release pertained to the same event as mentioned in the 8-K. The researchers also found t…