IDEAS home Printed from https://ideas.repec.org/a/taf/raaexx/v27y2020i3p327-351.html
   My bibliography  Save this article

The bright side of investor sentiment: evidence from real activities manipulation

Author

Listed:
  • Yi Si
  • Chongwu Xia
  • Endong Yang

Abstract

This paper studies how investor sentiment affects managers’ real activities manipulation (RAM). Under the catering hypothesis, managers engage in high level of RAM to meet investors’ expectations of earnings when sentiment is high. Under the curbing hypothesis, managers are concerned about the negative impact of RAM and sentiment reversal in the future, and hence involve in less RAM when sentiment is high. We find consistent results with the curbing hypothesis. Our results are robust to alternative specifications and measures for investor sentiment and RAM.

Suggested Citation

  • Yi Si & Chongwu Xia & Endong Yang, 2020. "The bright side of investor sentiment: evidence from real activities manipulation," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 27(3), pages 327-351, May.
    • Handle: RePEc:taf:raaexx:v:27:y:2020:i:3:p:327-351
    DOI: 10.1080/16081625.2019.1673186
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/16081625.2019.1673186
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/16081625.2019.1673186?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:raaexx:v:27:y:2020:i:3:p:327-351. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/raae20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.