Title

CEO and CFO risk-taking incentives and earnings guidance

Document Type

Article

Date of Original Version

9-1-2020

Abstract

Extending recent studies on chief executive officers (CEOs) and chief financial officers (CFOs), we investigate the impact of CEO and CFO risk-taking incentives on earnings guidance. We find that firms with high CEO risk-taking incentives are more likely to issue earnings guidance and issue more guidance. We also find that firms with high CFO risk-taking incentives are associated with less precise guidance, narrower forecast range, and earlier forecasts.

Publication Title

Applied Economics Letters

Volume

27

Issue

15

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