Do external labour market incentives constrain bad news hoarding? The CEO's industry tournament and crash risk reduction
Embargo Lift Date
MetadataShow full item record
© 2020 Elsevier B.V.
We find that a CEO's industry tournament incentives (CITI) induce a CEO to undertake strategies that reduce the propensity of a firm to incur future stock price crash risk. CITI also has a mitigating effect on accounting techniques (such as, accrual manipulation, real earnings management, and financial restatement) used as channels for obfuscation and, therefore, is associated with a lower tendency to withhold bad news. CITI is more effective in reducing crash risk propensity when there is lower information quality and weaker external monitoring. Results are robust to firm governance controls, gender monitoring, and the specific personal attributes of CEOs. In short, CITI imposes on CEOs an incentive to brand themselves according to sustained visibility concepts.
Showing items related by title, author, creator and subject.
Chong, Yen N. (2001)General routing problems deal with transporting some commodities and/or travelling along the axes of a given network in some optimal manner. In the modern world such problems arise in several contexts such as distribution ...
Davidson, Dean A. (1995)The catalyst for this research has been the growing national interest in inner city living. Specifically this has come from local and state government, the housing and land development industry, and the general public ...
Priester, R.; Kenworthy, Jeffery; Wulfhorst, G. (2013)Megacities around the globe present bewildering combinations of transport patterns, transport infrastructure and other factors related to personal mobility. From the sprawling auto-dependent regions such as Los Angeles ...