Journal of Accounting and Economics Vol. 21 No. 2 1996
Self-serving behavior in managers' discretionary information disclosure decisions
Abstract
Research has shown that managers display self-serving behavior in a variety of discretionary information production decisions. We test whether such behavior is also manifest in discretionary information disclosure decisions — in particular, in the common stock return performance comparisons now required in corporate proxy statements. We find evidence that the industry and peer-company stock return benchmarks, and broader market indices, chosen by management for those comparisons are downward biased, thereby overstating relative reporting-firm performance. Cross-sectionally, the extent of the bias varies with key reporting-firm attributes, including firm performance and the character of firm ownership structure.
- DOI
- 10.1016/0165-4101(95)00417-3
- Volume
- 21
- Issue
- 2
- Pages
- 227-251
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref