Header

UZH-Logo

Maintenance Infos

Investing in managerial honesty


Gibson, Rajna; Sohn, Matthias; Tanner, Carmen; Wagner, Alexander (2018). Investing in managerial honesty. London: VOX CEPR Policy Portal.

Abstract

Corporate fraud and managerial deception have been pervasive and value-destroying in recent decades. This column analyses whether investors form views about a CEO’s honesty based on his or her previous actions, and how this affects investment decisions. A CEO who has resisted, at personal cost, engaging in earnings management is perceived as being more committed to honesty, which appeals to pro­-social investors. Pro-self investors, on the other hand, value honesty when it comes to information regarding investment returns.

Abstract

Corporate fraud and managerial deception have been pervasive and value-destroying in recent decades. This column analyses whether investors form views about a CEO’s honesty based on his or her previous actions, and how this affects investment decisions. A CEO who has resisted, at personal cost, engaging in earnings management is perceived as being more committed to honesty, which appeals to pro­-social investors. Pro-self investors, on the other hand, value honesty when it comes to information regarding investment returns.

Statistics

Downloads

32 downloads since deposited on 22 Feb 2019
32 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Scientific Publication in Electronic Form
Communities & Collections:03 Faculty of Economics > Department of Banking and Finance
Dewey Decimal Classification:330 Economics
Language:English
Date:5 November 2018
Deposited On:22 Feb 2019 15:53
Last Modified:28 Oct 2019 08:28
Publisher:VOX CEPR Policy Portal
OA Status:Green
Official URL:https://voxeu.org/article/investing-managerial-honesty
Other Identification Number:merlin-id:17199

Download

Green Open Access

Download PDF  'Investing in managerial honesty'.
Preview
Content: Published Version
Filetype: PDF
Size: 243kB