We study the role of facial appearance in corporate director (re-)elections by means of director photographs published in annual reports. We find that shareholders use inferences from facial appearance in corporate elections, as a better (higher rated) appearance measure of a director reduces...

I hypothesize that managers exploit institutional investor distraction by issuing more pessimistic earnings guidance to reduce earnings expectations. I empirically test this conjecture and address endogeneity by exploiting plausibly exogenous variation in firm-level institutional investor...

This study examined Taiwanese listed company and OTC (Over-the-Counter) firms to explore empirically managerial overconfidence and compensation incentives induced risk-taking, and the impact on accrualbased earnings management (AEM) and real earnings management (REM). The study results show that...

We study the role of facial appearance in corporate director (re-)elections by means of director photographs published in annual reports. We find that shareholders use inferences from facial appearance in corporate elections, as a better (higher rated) appearance measure of a director reduces...

We find that when an acquirer is headquartered in a high social capital state in the US, it has a higher cumulative abnormal return (CAR) around an acquisition announcement. A one standard deviation increase in social capital is associated with a 3.63% increase in the standard deviation of the...

We identify the endogenous social effects proposed by Manski (1993) in firm R&D spending. By using state-level Uniform Trade Secrets Act (UTSA) enactments as exogenous shocks, we find that focal firms respond positively to peers' R&D expenditure. The results suggest that managerial learning and...

We present evidence that, following the passage of the Sarbanes-Oxley Act, firms responded to the increased requirement for outside director monitoring by substituting insiders with outside directors who have social or professional connections to their CEOs. This substitution was most...

This article examines the presence of the reference price effect in mergers and acquisitions in Russia, which can act as a distortion in investor perception of the influence a deal has on a company. In this study we use the Russian market as a laboratory for the investigation of behavioral...

We examine whether rival CEOs’ overconfidence influences a focal firm’s research and development (R&D) expenditure. We propose a stylized model based on an R&D competition game with CEOs having a keeping-up-with-the-Joneses preference. Our model predicts that the overconfidence level of...

In this paper we investigate the relationship between firm-specific investor sentiment, measured by applying text analysis to news stories published by Thomson Reuters, and merger and acquisition (M&A) deals announced by US-listed companies between 1997 and 2018. We find that a more positive...