Senior Lecturer, University of Sydney Business School

Buhui commenced as a Senior Lecturer at the University of Sydney in July 2015. He received his PhD in Finance from the University of Cincinnati and holds a Master of Arts in Accounting from Sun Yat-sen University and a Bachelor of Science in Physics from Fudan University. Prior to joining the University of Sydney, he was an assistant professor of finance at Erasmus University Rotterdam.

  • Do Corporate Managers Manipulate Disclosure through Changing 10-K File Size?

    Buhui Qiu    Quan Gan
    05 Dec 2017

    File size is a simple measure of disclosure document readability. This study shows that 10-K file size change has negative and robust cross-sectional stock return predictability. A hedge portfolio based on 10-K file size change generates an abnormal return spread of more than 3% per annum. 10-K file size change also has negative predictability on future cash flow news and the return predictability of 10-K file size change reflects mainly its information content on future cash flow news. Consistent with disclosure manipulation, the return predictability of 10-K file size change is found to be stronger for firms with positive file size changes, high information asymmetry, or low recent investor attention, and it derives from the discretionary component of file size change that reflects mainly managerial disclosure discretion. Overall, the findings strongly suggest that corporate managers engage in disclosure manipulation through changing 10-K file size.