Impact of Benchmarking on Firm Behavior
The study shows that when fund managers are compared more frequently to industry standards, it leads to an increase in a stock's risk level (CAPM β). This causes companies to decrease investment, hold more cash, and give more payouts to shareholders. These effects last for at least seven years.
Featured in No. 56 on 10 Jul 2024 · 8 days after release
- Released
- 2 Jul 2024
- First featured
- No. 56 · 10 Jul 2024
- Published in
- Not yet, as far as Semantic Scholar knows
- Shares when featured
- 2
- Identifier
- SSRN 4884602
Citations and venue from Semantic Scholar (ODC-BY), refreshed weekly. Summary: Quant Letter (CC BY 4.0).