SFI professors Rajna Gibson Brandon of the University of Geneva and Alexander F. Wagner of the University of Zurich, Dr. Matthias
Sohn of Zeppelin University, and Prof. Carmen Tanner of the University of Zurich employ experimental research techniques to
determine the role of perceived managerial honesty in investment decisions. Their paper Investing in Managerial Honesty
argues that investors form views about CEOs’ honesty based on the CEOs’ previous decisions regarding whether to earn a higher bonus by
managing upward the firm’s earnings. Although only legally acceptable practices of earnings management are considered,
results show that investors view a CEO who has resisted thetemptation as substantially more honest.
download the Swiss Finance Institute Practitioner Roundup with Prof. Rajna Gibson Brandon “Do Investors Value Managerial Honesty?”
A few press articles covering the research and the roundup: