11/05/2024 | News release | Distributed by Public on 11/05/2024 16:28
Steven Hyde, an assistant professor of management, recently published an article in the Strategic Management Journal, "The Tangled Webs We Weave: Examining The Effects Of CEO Deception On Analyst Recommendations," co-authored with colleagues.
This study explores how financial analysts react to CEO deception before it becomes public knowledge. By using advanced machine learning models, the researchers assessed both the likelihood of deceit and analysts' suspicions during earnings calls. They found that even when analysts suspect a CEO is being deceptive, analysts often still provide positive recommendations, particularly for highly regarded CEOs. This research highlights the importance of analysts staying alert and adaptable to potential CEO misconduct.