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Do Competent Managers Hoard Bad News? Self-regulation Theory and Korean Evidence

Finance Research Letters, 2021
Abstract This study investigates the relationship between managerial ability and opportunistic behavior, especially hoarding negative information. Borrowing self-regulation resource theory, we expect that competent managers may have fewer self-regulation resources and are more likely to engage in bad news hoarding because they are exposed to chronic ...
Sejoong Lee
exaly   +2 more sources

Can reputation concern restrain bad news hoarding in family firms?

Journal of Banking and Finance, 2020
Abstract Family involvement as chair of the board combines the reputation of the controlling family and the firm. Thus, the family's incentive to prevent reputation loss acts as a corporate governance mechanism in mitigating self-serving and bad news hoarding behavior of family firms. We find a lower future stock price crash risk in family firms with
John Nofsinger   +2 more
exaly   +2 more sources

Do dividends mitigate bad news hoarding, overinvestments, and stock price crash risk?

Accounting and Finance
Abstract Using a large sample of US firms over the period of 1991–2015, we examine the economic benefits of paying dividends. We find that dividend payments mitigate stock price crash risk. We show that dividend payments reduce bad news hoarding (overinvestments) while bad news hoarding (overinvestments) is (are) positively associated
Jeong Bon Kim
exaly   +2 more sources

Social media information dissemination and corporate bad news hoarding

Accounting & Finance, 2022
AbstractThis paper investigates the role of social media in mitigating corporate bad news hoarding from a stock price crash risk perspective. Using a sample of public listed firms from 2008–2019, we find that social media (Guba) posts could significantly reduce firms’ stock price crash risks in the Chinese stock market.
Feng He, Yaqian Feng, Lingbing Feng
openaire   +1 more source

Media Attention and Selective Managerial Bad News Hoarding

SSRN Electronic Journal, 2018
This paper investigates whether media attention impacts the extent to which managers hoard bad news in general and whether the effect applies to conspicuous news, such as earnings news. We find that greater media attention escalates managerial bad news hoarding; however, such an effect does not apply to bad earnings news.
Yangyang Chen   +3 more
openaire   +1 more source

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