Does enterprise risk management bolster investor confidence? Evidence from options-based restatement contagion, investment, and misstatements

IF 4.9 3区管理学 Q1 BUSINESS, FINANCE

Contemporary Accounting Research Pub Date : 2025-09-22 DOI:10.1111/1911-3846.13063

Michael Neel, Jianren Xu

引用次数: 0

Abstract

Using industry restatement contagion as an external negative shock, we study the effectiveness of enterprise risk management (ERM) in mitigating downside risk and enhancing investor confidence. We find that ERM curbs overinvestment and earnings misstatement among firms when other firms in their industry engage in undisclosed misstatements that are subsequently restated. Following the announcements of these industry restatements, peers with ERM experience a smaller increase in implied volatility skewness. These effects are driven by peers with young CEOs, complex segment structures, low prior earnings performance, and in competitive industries. Overall, our findings highlight ERM's role in bolstering investor confidence by effectively managing firms' underlying risks.

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企业风险管理能否增强投资者信心？基于期权的重述传染、投资和错报的证据

本文以行业重述传染为外部负面冲击，研究了企业风险管理（ERM）在缓解下行风险和增强投资者信心方面的有效性。我们发现，当同一行业的其他公司存在未披露的错报并随后重新陈述时，ERM可以抑制企业之间的过度投资和盈余错报。在这些行业重述公告发布后，拥有ERM的同业隐含波动率偏度的增幅较小。这些影响是由年轻ceo的同行、复杂的部门结构、较低的先前盈利表现以及竞争激烈的行业驱动的。总体而言，我们的研究结果强调了ERM通过有效管理公司潜在风险在增强投资者信心方面的作用。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Contemporary Accounting Research BUSINESS, FINANCE-

CiteScore

6.20

自引率

11.10%

发文量

期刊介绍： Contemporary Accounting Research (CAR) is the premiere research journal of the Canadian Academic Accounting Association, which publishes leading- edge research that contributes to our understanding of all aspects of accounting"s role within organizations, markets or society. Canadian based, increasingly global in scope, CAR seeks to reflect the geographical and intellectual diversity in accounting research. To accomplish this, CAR will continue to publish in its traditional areas of excellence, while seeking to more fully represent other research streams in its pages, so as to continue and expand its tradition of excellence.