Marking to Market and Inefficient Investment Decisions

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Summary

This paper examines how mark-to-market accounting affects the investment decisions of managers with reputation concerns and finds that managers may shy away from investments that indicate conflicting private information and would damage their reputation.

Type
article
Published
2017-04-05
Cited by
20
References
58
Access
Open access

Keywords

Reputation, Business, Agency (philosophy), Market value, Investment (military)

References

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