The effect of overvaluation on investment and accruals: The role of information
| Autor: | Christine W. Lai, Shing-yang Hu, Yueh-hsiang Lin |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
040101 forestry
Economics and Econometrics 050208 finance Capital investment Accrual business.industry Corporate governance 05 social sciences Institutional investor Accounting 04 agricultural and veterinary sciences Information environment Monetary economics Investment (macroeconomics) Causality Earnings management 0502 economics and business 0401 agriculture forestry and fisheries Business Finance |
| Zdroj: | Journal of Empirical Finance. 38:181-201 |
| ISSN: | 0927-5398 |
| DOI: | 10.1016/j.jempfin.2016.06.004 |
| Popis: | This paper examines whether the effect of overvaluation on accrual and investment is weak in a good information environment using the naive manager hypothesis and the monitoring hypothesis. The results show that CEOs recognize overvaluation and reduce their shareholdings regardless of the extent of the information environment and the naive manager hypothesis is not supported. However, managers in a good information environment do not respond to overvaluation with accrual or investment, and more institutional investors help to reduce overvaluation-driven behaviors. Thus, the monitoring hypothesis is supported. These findings are free from causality concerns and robust for alternative measures of misvaluation. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|
Full Text from ScienceDirect