Dessaint, Olivier; Matray, Adrien - 2013
. We find that the sudden shock to the perceived liquidity risk leads managers to increase corporate cash holdings and to … express more concerns about hurricane risk in 10-Ks/10-Qs, even though the actual risk remains unchanged. Both effects are … temporary. Over time, the perceived risk decreases, and the bias disappears. The distortion between perceived and actual risk is …
