Speaker:Zhang Xu, Assistant Professor (The Hong Kong University of Science and Technology (Guangzhou))

Host:Lan Lan, Assistant Professor (Li Anmin Institute of Economic Research, Liaoning University)

Guest Introducer:Wen Hui, Assistant Professor (Li Anmin Institute of Economic Research, Liaoning University)

Time:May 22, 2026 (Friday), 10:00 – 11:30 AM (Beijing Time)

Location:Room 483, Economics Building, Puhe Campus, Liaoning University

Online Access:Tencent Meeting 730-281-8924

Language:Chinese/English

Abstract:

We study how increased market salience of a risk affects corporate disclosure transparency when investors are boundedly rational. In our model, heightened salience reduces cognitive processing costs, raising investors’attention to fundamentals. This triggers asymmetric obfuscation: underperforming firms increase disclosure ambiguity to dampen adverse price impacts, while outperforming firms maintain transparency. We test these predictions using China’s 2021 dual-carbon mandates as an exogenous shock to environmental risk salience. Using Large Language Models to classify million-scale interactions on investor Q&A platforms, we find that pollution-intensive firms significantly reduce response relevance and length to environmental inquiries post-shock. Dual-platform microdata confirm the cognitive mechanism: the shock elevated both intuitive risk perception and analytical engagement with firm fundamentals. The obfuscation effect concentrates among firms with myopic managers, severe financial constraints, and limited alternative disclosure channels. Our findings suggest salience-enhancing regulation can be counterproductive when policymakers ignore strategic interactions between investor attention and corporate opacity.

Speaker Profile:

Assistant Professor Zhang Xu** received his Ph.D. in Economics from Brown University in May 2020. He currently works in the Innovation, Entrepreneurship, and Public Policy Thrust at The Hong Kong University of Science and Technology (Guangzhou). His primary research fields include microeconomic theory, information economics, behavioral economics, and experimental economics. His research topics cover information design, non-rational probabilistic inference, trust and cooperation, and social preferences. His main research findings have been published in leading international economics journals such as the Journal of Political Economy and the Journal of Economic Behavior and Organization.