Playing Favorites: How Firms Prevent the Revelation of Bad News
---- Acknowledgements ----
We would like to thank Javed Ahmed, Malcolm Baker, Bo Becker, Zhi Da, Kent Daniel, Alex Edmans, Ben Esty, Bill Mayew, Scott Mayfield, Atif Mian, Daniel Paravisini, Jose Scheinkman, Kelly Shue, Han Xia, and seminar participants at Case Western Reserve University, China Europe International Business School, University of Georgia, Harvard Business School, Hong Kong University of Science and Technology, Indiana University, London Business School, London School of Economics, University of Notre Dame, Pontifica Universidad Catholica De Chile, Princeton University, University of Washington, University of York, 2013 Helsinki Finance Summit, 2013 Yale Doctoral Summer Program in Behavioral Finance, 2013 European Finance Association Annual Meeting, Acadian Asset Management, and SAC Capital for helpful comments and discussions. Huaizhi Chen and David Kim provided excellent research assistance. We are grateful for funding from the National Science Foundation and the Paul Woolley Center at the London School of Economics. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.