When managers cover their posteriors: Making the decisions the market wants to see

RAND Journal of Economics

Volumn 27, Issue 3, 1996, Pages 523-541

  Brandenburger, Adam ^a   Polak, Ben ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0030514889     PISSN: 07416261     EISSN: None     Source Type: Journal    
DOI: 10.2307/2555842     Document Type: Article

References (28)

1. ABEGGLEN, J.C. AND STALK, G., JR. Kaisha: The Japanese Corporation. New York: Basic Books, 1985.
2. BANERJEE, A. "A Simple Model of Herd Behavior." Quarterly Journal of Economics, Vol. 107 (1992), pp. 797-817.
3. BEBCHUK, L.A. AND STOLE, L.A. "Do Short-Term Managerial Objectives Lead to Under-or Overinvestment in Long-Term Projects?" Journal of Finance, Vol. 48 (1992), pp. 719-729.
4. BHATTACHARYA, S. "Financial Intermediation with Proprietary Information." Working Paper, Delhi School of Economics, 1992.
5. BHIDE, A. "The Hidden Costs of Stock Market Liquidity." Journal of Financial Economics Vol. 34 (1993), pp. 31-51.
6. BIKHCHANDANI, S., HIRSHLEIFER, D., AND WELCH, I. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades." Journal of Political Economy, Vol. 100 (1992), pp. 992-1026.
7. BIZJAK, J.M., BRICKLEY, J.A., AND COLES, J.L. "Stock-Based Incentive Compensation and Investment Behavior." Journal of Accounting and Economics, Vol. 16 (1993), pp. 349-372.
8. BULOW, J. AND KLEMPERER, P. "Rational Frenzies and Crashes." Journal of Political Economy, Vol. 102 (1994), pp. 1-23.
9. CHEN, Y. "Conflicting Interests in Information Disclosure and Short-Term Orientation of Firms." International Journal of Industrial Organization, Vol. 12 (1994), pp. 211-225.
10. GEANAKOPLOS, J., PEARCE, D., AND STACCHETTI, E. "Psychological Games and Sequential Rationality." Games and Economic Behavior, Vol. 1 (1989), pp. 60-79.
11. GRAHAM, J.R. "Herding Among Investment Newsletters: Theory and Evidence." Working Paper, Eccles School of Business, University of Utah, 1995.
12. GRANT, S., KING, S.P., AND POLAK, B. "Information Externalities, Share-Price Based Incentives and Managerial Behaviour." Journal of Economic Surveys, Vol. 10 (1996), pp. 1-21.
13. HAGERTY, K., OFER, A., AND SIEGEL, D. "Managerial Compensation and Incentives to Engage in Farsighted Behavior." Working Paper no. 89, Kellogg Graduate School of Management, Northwestern University, 1992.
14. HIRSHLEIFER, D. "Reputation, Incentives and Managerial Decisions." In P. Newman, M. Milgate, and J. Eatwell, eds., The New Palgrave Dictionary of Money and Finance. New York: Stockton Press, 1992.
15. _. "Managerial Reputation and Corporate Investment Decisions." Financial Management, Vol. 22 (1993), pp. 145-160.
16. _ AND CHORDIA, T. "Resolution Preference and Project Choice." Working Paper no. 21-90, Anderson Graduate School of Management, University of California at Los Angeles, 1992.
17. JACOBS, M.T. Short-Term America: The Causes and Cures of Our Business Myopia. Boston: Harvard Business School Press, 1991.
18. JENSEN, M.C. "The Takeover Controversy: Analysis and Evidence." Midland Corporate Finance Journal, Vol. 4 (1986), pp. 6-32.
19. MYERS, S.C. AND MAJLUF, N.S. "Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have." Journal of Financial Economics, Vol. 13 (1984), pp. 187-221.
20. NARAYANAN, M.P. "Managerial Incentives for Short-Term Results." Journal of Finance, Vol. 40 (1985), pp. 1469-1484.
21. PAUL, J.M. "Managerial Myopia and the Observability of Future Cash Flows." Working Paper, School of Business Administration, University of Michigan, 1991.
22. _. "On the Efficiency of Stock-Based Compensation." Review of Financial Studies, Vol. 5 (1992), pp. 471-502.
23. SCHARFSTEIN, D.S. AND STEIN, J.C. "Herd Behavior and Investment." American Economic Review, Vol. 80 (1990), pp. 465-479.
24. STEIN, J.C. "Efficient Capital Markets, Inefficient Firms: A Model of Myopic Corporate Behavior." Quarterly Journal of Economics, Vol. 104 (1989), pp. 655-669.
25. TRUEMAN, B. "The Relationship Between the Level of Capital Expenditures and Firm Value." Journal of Financial and Quantitative Analysis, Vol. 21 (1986), pp. 115-129.
26. _. "Analyst Forecasts and Herding Behavior." Review of Financial Studies, Vol. 7 (1994), pp. 97-124.
27. WELCH, I. "Sequential Sales, Learning, and Cascades." Journal of Finance, Vol. 47 (1992), pp. 695-732.
28. ZWIEBEL, J. "Corporate Conservatism and Relative Compensation." Journal of Political Economy, Vol. 103 (1995), pp. 1-25.