Behavioral agency and the efficacy of analysts as external monitors: Examining the moderating role of CEO personality

• 成果类型: Article
• 署名作者: Andrei, Alina G.; Benischke, Mirko H.; Martin, Geoffrey P.
• 署名单位: Erasmus University Rotterdam; Erasmus University Rotterdam - Excl Erasmus MC; University of Melbourne; Erasmus University Rotterdam; Erasmus University Rotterdam - Excl Erasmus MC
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.3548
• 发表日期: 2024
• 页码: 113-143
• 关键词: behavioral agency; CEO personality; corporate governance; External monitoring; Investment analysts

摘要

We integrate behavioral agency research and the five-factor model of personality to re-visit investment analysts' efficacy as a mechanism for reducing agency costs. We highlight the role of personality in shaping how CEOs respond to analyst recommendations, leading to boundary conditions for the efficacy of analysts as external monitors. We theorize that the extent to which a CEO perceives a threat from more positive analyst recommendations is contingent upon their personality, which shapes their subjective interpretation of the recommendation and their use of income-increasing earnings management in response. Our findings suggest that personality is critical to understanding how CEOs respond to external monitors and the agency costs associated with the positive analyst recommendations.