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An Empirical Analysis of CEO Risk Aversion and the Propensity to Smooth Earnings Volatility
16 references·10 citing·34 second hop
An Empirical Analysis of CEO Risk Aversion and the Propensity to Smooth Earnings Volatility (2006)An Empirical Analysis of CEO Risk Aversio…The Economic Implications of Corporate Financial Reporting (2004)The Economic Implications of …Earnings management and investor protection: an international comparison (2003)Earnings management and inves…The rewards to meeting or beating earnings expectations (2002)The rewards to meeting or bea…Have Individual Stocks Become More Volatile? An Empirical Exploration of Idiosyncratic Risk (2001)Have Individual Stocks Become…Earnings Management: Reconciling the Views of Accounting Academics, Practitioners, and Regulators (2000)Earnings Management: Reconcil…Understanding the determinants of managerial ownership and the link between ownership and performance (1999)Understanding the determinant…A Review of the Earnings Management Literature and Its Implications for Standard Setting (1999)A Review of the Earnings Mana…Investment under Uncertainty (1994)Investment under UncertaintyPerformance Pay and Top-Management Incentives (1990)Performance Pay and Top-Manag…The effect of bonus schemes on accounting decisions (1985)The effect of bonus schemes o…Limited-dependent and qualitative variables in econometrics (1983)Limited-dependent and qualita…The Value of Waiting to Invest (1982)The Value of Waiting to InvestEssays in the Theory of Risk-Bearing. (1972)Essays in the Theory of Risk-…Equilibrium in a Capital Asset Market (1966)Equilibrium in a Capital Asse…Risk Aversion in the Small and in the Large (1964)Risk Aversion in the Small an…CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)CAPITAL ASSET PRICES: A THEOR…Does the risk aversion of accountants matter? Female rank-and-file accounting employees and internal control quality (2024)Does the risk aversion of acc…Managerial ability, managerial risk taking and innovation performance (2023)Managerial ability, manageria…Risk‐Taking Incentives and Earnings Management: New Evidence* (2021)Risk‐Taking Incentives and Ea…Corporate social responsibility performance and the reputational incentives of independent directors (2021)Corporate social responsibili…Managerial risk appetite and asymmetry cost behavior: evidence from China (2020)Managerial risk appetite and …Do Banks Price Independent Directors’ Attention? (2018)Do Banks Price Independent Di…Clawback provision adoption, corporate governance, and investment decisions (2017)Clawback provision adoption, …CEO personal investment decisions and firm risk (2017)CEO personal investment decis…The Effect of CEO Risk Appetite on Firm Volatility: An Empirical Analysis of Financial Firms☆ (2012)The Effect of CEO Risk Appeti…Income Smoothing and Idiosyncratic Volatility (2009)Income Smoothing and Idiosync…Capital Theory and Investment Behavior (1963)Option pricing when underlying stock returns are discontinuous (1976)Irreversibility, Uncertainty, and Cyclical Investment (1980)Conditional Heteroskedasticity in Asset Returns: A New Approach (1991)Joint Ventures and the Option to Expand and Acquire (1991)Operating Flexibility, Global Manufacturing, and the Option Value of a Multinational Network (1994)A Survey of Corporate Governance (1997)Law and Finance (1998)Corporate Ownership Around the World (1999)The economic implications of corporate financial reporting (2005)International Accounting Standards and Accounting Quality (2008)Understanding earnings quality: A review of the proxies, their determinants and their consequences (2010)Earnings Management During Import Relief Investigations (1991)Causes and Consequences of Earnings Manipulation: An Analysis of Firms Subject to Enforcement Actions by the SEC* (1996)Earnings management to avoid earnings decreases and losses (1997)Earnings Management through Real Activities Manipulation (2003)An Intertemporal Capital Asset Pricing Model (1973)The Pricing of Options and Corporate Liabilities (1973)Moral Hazard and Observability (1979)Prospect theory: An analysis of decision under risk (1988)The New Institutional Economics: Taking Stock, Looking Ahead (2000)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)Common risk factors in the returns on stocks and bonds (1993)Econometric Analysis of Cross Section and Panel Data (2001)Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages (2004)Introductory Econometrics for Finance (2008)The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems (1993)Higher market valuation of companies with a small board of directors (1996)On the measurement of inequality (1970)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)The arbitrage theory of capital asset pricing (1976)The Stochastic Behavior of Commodity Prices: Implications for Valuation and Hedging (1997)Capital markets research in accounting (2001)Policy Uncertainty and Corporate Investment (2015)
this work references cited by second hop

References

  • 1964CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK*19,431 cited
  • 1983Limited-dependent and qualitative variables in econometrics13,257 cited
  • 1994Investment under Uncertainty9,016 cited
  • 2003Earnings management and investor protection: an international comparison5,395 cited
  • 1990Performance Pay and Top-Management Incentives5,080 cited
  • 1964Risk Aversion in the Small and in the Large4,964 cited
  • 1966Equilibrium in a Capital Asset Market4,896 cited
  • 1999A Review of the Earnings Management Literature and Its Implications for Standard Setting4,637 cited
  • 1972Essays in the Theory of Risk-Bearing.3,991 cited
  • 1982The Value of Waiting to Invest3,606 cited
  • 1985The effect of bonus schemes on accounting decisions3,311 cited
  • 1999Understanding the determinants of managerial ownership and the link between ownership and performance2,502 cited
  • 2001Have Individual Stocks Become More Volatile? An Empirical Exploration of Idiosyncratic Risk2,419 cited
  • 2004The Economic Implications of Corporate Financial Reporting1,998 cited
  • 2000Earnings Management: Reconciling the Views of Accounting Academics, Practitioners, and Regulators

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1,932 cited
  • 2002The rewards to meeting or beating earnings expectations1,706 cited
  • Cited by

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    • 2021Risk‐Taking Incentives and Earnings Management: New Evidence*34 cited
    • 2012The Effect of CEO Risk Appetite on Firm Volatility: An Empirical Analysis of Financial Firms☆32 cited
    • 2017CEO personal investment decisions and firm risk30 cited
    • 2017Clawback provision adoption, corporate governance, and investment decisions25 cited
    • 2009Income Smoothing and Idiosyncratic Volatility22 cited
    • 2024Does the risk aversion of accountants matter? Female rank-and-file accounting employees and internal control quality19 cited