Title: 

Unintended Costs of Strategic Action: The Case of Firms’ Earnings Gamesmanship

Abstract: 

This paper provides a dynamic perspective on the relationship between institutional pressure and strategic action by firms. Taking as a case in point U.S. listed firms’ strategic behavior towards external expectations developed in the stock market, we develop predictions on the dynamic effects of firms’ strategic action. We test our hypotheses using data from a sample of large publicly-traded U.S. firms, and generally find support for our predictions.

Coauthor of the paper:

Jiwook Jung (University of Illinois at Urbana-Champaign): https://ler.illinois.edu/about/faculty-staff/faculty/jung-jiwook

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