Nothing but good intentions: the search for equity and stock price crash risk

Abstract In this study, we examine whether and how managers’ intentions to raise equity are associated with future stock price crash risk. Therefore, apply modern information retrieval techniques corporate textual disclosures by constructing document embeddings that preserve contextual relationships in discussions on liquidity capital resources. Using these embeddings, construct a continuous measure of equity. We the search for is higher Further analyses suggest managers stronger more likely block negative news flow reinforce effects earnings manipulation obfuscation summary, our results incentivises managerial bad hoarding.