Self-serving behavior in managers' discretionary information disclosure decisions

摘要: Abstract Research has shown that managers display self-serving behavior in a variety of discretionary information production decisions. We test whether such is also manifest disclosure decisions — particular, the common stock return performance comparisons now required corporate proxy statements. find evidence industry and peer-company benchmarks, broader market indices, chosen by management for those are downward biased, thereby overstating relative reporting-firm performance. Cross-sectionally, extent bias varies with key attributes, including firm character ownership structure.