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, generally implicit assumption that managers cannot undo their incentive packages, (ii) the standard modeling practice of … motives in managers' portfolio choices. …
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delivers two predictions. First, managers have an incentive to reduce the correlation between inside debt and company stock in … bad times. Second, managers that reduce such a correlation take on more risk in bad times. Using a sample of U.S. public …
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suggests that managers consider reputation and litigation risk associated with earnings management and they manage earnings … signal revealing managers' private information about firm quality. Consistent with the signaling explanation we observe a …
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This paper studies the earnings management behavior of a manager in a strategic game in which the manager may have incentives to avoid earnings below the analysts' consensus forecast and the analysts aiming to provide accurate forecasts behave as rational Bayesians. Our analysis reveals the...
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