Playing It Safe? Managerial Preferences, Risk, and Agency Conflicts

By Todd A. Gormley, David A. Matsa. 2016

415 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/a0e2e9190fda2586c5bf9187e32b3d621349a280

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Citations in the corpus

Standing on the Shoulders of Giants: The Effect of Passive Investors on Activism (2016, neutral): “Given the myriad of agency conflicts that might exist between managers and shareholders, such as a manager’s inclination to empire build, to enjoy the quiet life, or to play it safe (e.g., Jensen, 1986; Bertrand and Mullainathan, 2003; Gormley and Matsa, 2015), it is crucial to understand how the sh”
The Product Market Effects of Hedge Fund Activism (2016, positive): “The inclusion of these xed e¤ects ensures that our di¤erence-in-di¤erence estimates are robust to industry- and time-speci c unobservable (or omitted) variables that might otherwise confound our analysis (Gormley and Matsa, 2014a).”
Do Firms Engage in Risk-Shifting? Empirical Evidence (2016, neutral): “Gormley and Matsa (2014) show that managers have an incentive to “Play it safe” in order to avoid distress.”
Does a Long-Term Orientation Create Value? Evidence from a Regression Discontinuity (2017, background): “For example, in the aforementioned survey of Graham et al. (2005), 78% of the surveyed executives stated that they would sacrifice projects with positive NPV, if adopting them resulted in the firm missing quarterly earnings expectations. Similarly, DeGeorge, Patel, and Zeckhauser (1999) document tha”
Borrowers under water! Rare disasters, regional banks, and recovery lending (2020, background): “The exclusion of timevarying (bank) controls tests whether the results hinge on a particular choice of covariates (Gormley and Matsa, 2016).”
The effects of financial reporting and disclosure on corporate investment: A review (2019, methodology): “Similarly, the manager might forego positive-NPV projects they consider too risky for their personal welfare (Gormley and Matsa, 2016). The moral hazard scenarios discussed above illustrate how managers' specific incentives may lead them to invest in a manner that does not align with shareholders' p”
Sharing Risk with the Government: How Taxes Affect Corporate Risk Taking (2017, neutral): “career concerns (May 1995; Gormley and Matsa 2016), the sensitivity of CEO wealth to stock”
The local innovation spillovers of listed firms (2021, methodology): “To disentangle innovation spillovers from the effects of local conditions, I exploit a shock on the research labs of listed firms in a given geographical area produced by a regulatory change coming from a different state.”