English, Article, Journal or magazine article edition: Explanation and Misrepresentation in the Laboratory Lucy F. Ackert; Bryan K. Church; Ping Zhang

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/195122
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Explanation and Misrepresentation in the Laboratory
Author
  • Lucy F. Ackert
  • Bryan K. Church
  • Ping Zhang
Physical Description
  • preprint
Notes
  • We report the results of an experiment designed to examine the effect of opportunity to provide an explanation for inaccurate results and predictability of behavior on managersâ?? reporting bias and investorsâ?? ability to decipher the bias. We conduct 20 experimental sessions, each comprised of one manager and three or four investors. The manager has an incentive, in general, to inflate investorsâ?? expectations and investors have an incentive to accurately predict value. We find that the manager reports with an upward bias a majority of the time. The magnitude of the bias, however, is lessened considerably when the managerâ??s reporting behavior is unpredictable and the manager has an opportunity to explain inaccurate (biased) reports. The data suggest that under such conditions the manager seeks to avoid reporting inaccurately and having to choose an explanation. We also find that investors adapt to the managerâ??s behavior and, strikingly, anticipate that explanation dampens reporting bias.
  • RePEc:exc:wpaper:2006-25
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment