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This paper studies how investors infer CEO commitment to honesty from earnings management and how these perceptions … honesty when they infer that the CEO engaged less in earnings management. For investment decisions, a one standard deviation … increase in a CEO's perceived commitment to honesty compared to another CEO reduces the relevance of differences in the CEOs …
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Social norms can act as safeguards against corporate misconduct, but can also foster undesirable behavior. To study differences in individual resistance to social norms, we conduct a laboratory experiment on misrepresentation of earnings. There are systematic differences among individuals'...
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While it is well established that individuals and groups make different economic decisions, the reasons for the behavioral differences are still not fully understood. We experimentally compare individual and group behavior in a competitive setting where cheating can be used to outperform the...
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