|Title:||The effect of overvaluation on investment and accruals: The role of information||Authors:||SHING-YANG HU
Lin, Yueh Hsiang
Lai, Christine W.
|Keywords:||Accrual | Capital investment | Earnings management | Governance | Information | Misvaluation||Issue Date:||1-Sep-2016||Publisher:||ELSEVIER SCIENCE BV||Journal Volume:||38||Start page/Pages:||181||Source:||Journal of Empirical Finance||Abstract:||
© 2016 Elsevier B.V. All rights reserved. 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.
|Appears in Collections:||財務金融學系|
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