Optimistic Disclosure Tone and Conservative Debt Policy.
We examine the relationship between managerial optimism and debt conservatism (i.e., the low‐leverage puzzle). Our analysis demonstrates that optimistic tone, our time‐varying optimism measure, significantly decreases leverage. This evidence supports the proposition that optimistic managers who cons...
| Publicado en: | Abacus Vol. 54; no. 4; pp. 445 - 485 |
|---|---|
| Autores principales: | , , |
| Formato: | Artículo |
| Publicado: |
Wiley-Blackwell
Dec2018
|
| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=133724163&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 133724163 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00013072 AUB jtl: Abacus issn: 00013072 maglogo: Y pubinfo: dt: Dec2018 vid: 54 iid: 4 pid: 480 pub: Wiley-Blackwell artinfo: ui: 133724163 10.1111/abac.12140 ppf: 445 ppct: 40 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 296KB tig: atl: Optimistic Disclosure Tone and Conservative Debt Policy. aug: au: Ataullah, Ali Vivian, Andrew Xu, Bin affil: Open University Business School School of Business and Economics at Loughborough University Leeds University Business School su: Emerging markets Industrial management Dividends Stock price forecasting Earnings management sug: subj: Emerging markets Industrial management Dividends Stock price forecasting Earnings management keyword: Cash Debt conservatism Dividend Insider trading Managerial optimism Tone analysis ab: We examine the relationship between managerial optimism and debt conservatism (i.e., the low‐leverage puzzle). Our analysis demonstrates that optimistic tone, our time‐varying optimism measure, significantly decreases leverage. This evidence supports the proposition that optimistic managers who consider external financing as unduly costly use debt conservatively. This reduced reliance on external financing can be explained by further evidence that optimistic tone significantly increases cash holdings and decreases dividend payment. The negative tone–leverage relation is stronger in the presence of high insider purchase of own stocks, which confirms that optimistic tone reflects managerial optimism. This study suggests that managerial optimism can help explain the low‐leverage puzzle. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y custom: Copyright of Abacus is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. item: Abacus holder: Wiley-Blackwell dt: @attributes: year: 2018 holdings: @attributes: islocal: N |
|---|