Song's Research Accepted by Contemporary Accounting Research

Scarlett Song, assistant professor of accounting and finance, recently had a paper accepted for publication in Contemporary Accounting Research — one of the top-ranked journals in the field (FT50, A*).

The paper, “Strategic Reporting Through Counterpoised Disclosure: Evidence from the Biopharma Industry,” explores how companies communicate with investors when delivering important news—particularly when that news isn’t positive.

The research explores how, when companies share bad news, they often pair it with other, more positive updates about their business.

For example, if a pharmaceutical company announces that one drug has failed or been rejected, it may also highlight progress on other drugs still in development. This approach—known as “counterpoised disclosure”—helps provide a broader picture of the company’s overall outlook.

Song’s research found:

• Companies are more likely to use this strategy when delivering negative news
• Including additional positive context can soften investor reactions
• The updates companies choose to highlight are often credible indicators of future success 

While the study focuses on the biopharmaceutical industry — where individual product outcomes can significantly impact company value — the findings offer broader insight into how organizations communicate strategically with stakeholders.