CEO Materialism and Corporate Social Responsibility

Robert H Davidson Pamplin School of Business, Virginia Polytechnic Institute and State University Aiyesha Dey Harvard Business School, Harvard University Abbie J Smith The University of Chicago Booth School of Business Abstract We study the role of individual CEOs in explaining corporate social responsibility (CSR) scores. We find that CEO fixed-effects explain 59% of the variation in CSR scores, whereas firm...

Executives’ “Off-the-Job” Behavior, Corporate Culture, and Financial Reporting Risk

Robert H Davidson McDonough School of Business, Georgetown University Aiyesha Dey Carlson School of Management, University of Minnesota Abbie J Smith The University of Chicago Booth School of Business Abstract We examine how executives’ behavior outside the workplace, as measured by their ownership of luxury goods (low “frugality”) and prior legal infractions, is related to financial reporting risk. We predict...

Bank CEO Materialism: Risk controls, culture, and tail risk

Robert M Bushman Kenan-Flagler Business School, University of North Carolina-Chapel Hill Robert H Davidson Pamplin School of Business, Virginia Polytechnic Institute and State University Aiyesha Dey Carlson School of Management, University of Minnesota Abbie J Smith The University of Chicago Booth School of Business Abstract We investigate how the prevalence of materialistic bank CEOs has evolved over time, and how...

Income Statement Fraud and Balance Sheet Fraud: Different Manipulations, Different Incentives

Robert H Davidson Pamplin School of Business, Virginia Polytechnic Institute and State University January 2017 Abstract I find managers commit income statement fraud (fraud in which manipulations increase net income) when market price sensitivity to earnings news is high and their firms’ stock price is relatively more sensitive to idiosyncratic earnings performance. Managers commit balance sheet fraud (fraud in...

Executives’ Legal Records and the Deterrent Effects of Corporate Governance

Robert H Davidson Pamplin School of Business, Virginia Polytechnic Institute and State University Aiyesha Dey Harvard Business School Abbie J Smith The University of Chicago Booth School of Business Abstract We study whether the effectiveness of corporate governance mechanisms varies depending on the characteristics of the executives subject to these mechanisms – namely, their “psychological type”, as...