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Extant research shows that CEO characteristics affect earnings management. This paper studies how investors infer a specific characteristic of CEOs, namely moral commitment to honesty, from earnings management and how this perception - in conjunction with their own social and moral preferences -...
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This paper studies how investors infer CEO commitment to honesty from earnings management and how these perceptions – in conjunction with investors’ own social and moral preferences – shape their investment choices. We conduct two laboratory experiments simulating investment choices. Our...
Persistent link: https://www.econbiz.de/10011626498
, surprise, anger, sad, fear, disgust) for managers attending the earnings call. We identify emotions using novel natural … intensity. We find that managers exhibit more positive emotions such as ‘joy’ and ‘trust’ than negative emotions such as ‘anger … following a conference call in which the managers exhibit more positive (negative) emotions. Overall, this study enhances our …
Persistent link: https://www.econbiz.de/10014352818
Using an experimental design, we examine whether CEO race and CEO gender affect investors’ willingness to invest in a company, their forecasts of future performance, and their evaluations of CEO performance, when given narrative and financial information about a firm. We deliberately avoid...
Persistent link: https://www.econbiz.de/10013405986
This study examines how rookie independent directors (RIDs) affect corporate fraud. Using a large sample of Chinese listed firms, we find that firms with greater RID representation are more likely to commit fraud. Our result remains robust after controlling for numerous firm and board...
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