Can investors fully adjust for known biases in manager communications?

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Can investors fully adjust for known biases in manager communications?

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dc.contributor.advisor Koonce, Lisa Lynn, 1959-
dc.creator Smith, James William, 1979-
dc.date.accessioned 2012-09-26T21:18:13Z
dc.date.available 2012-09-26T21:18:13Z
dc.date.created 2012-08
dc.date.issued 2012-09-26
dc.identifier.uri http://hdl.handle.net/2152/18036
dc.description.abstract Managerial communications often contain biased information because of managerial incentives and other influences. A common assumption in the accounting literature is that if investors are aware of managerial biases, they will be able to fully adjust for those known biases when reacting to managerial communications. Drawing on insights from psychology, I experimentally document that investors are not able to fully adjust for known biases in managerial communications--even when investors know the quantitative amount of the manager's bias. Indeed, investors behave contrary to economic theory as they are unable to fully unravel the effects of known biases when rendering judgments about the firm. My study has implications for researchers, regulators, and investors.
dc.format.medium electronic
dc.language.iso eng
dc.rights Copyright © is held by the author. Presentation of this material on the Libraries' web site by University Libraries, The University of Texas at Austin was made possible under a limited license grant from the author who has retained all copyrights in the works.
dc.subject Financial accounting
dc.subject Managerial bias
dc.subject Belief bias
dc.title Can investors fully adjust for known biases in manager communications?
dc.description.department Accounting
dc.type.genre Thesis
dc.type.material text
thesis.degree.department Accounting
thesis.degree.discipline Accounting
thesis.degree.grantor The University of Texas at Austin
thesis.degree.level Doctoral
thesis.degree.name Doctor of Philosophy

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