Do Competent Managers Hoard Bad News? Self-regulation Theory and Korean Evidence

Sangho Lee, Sejoong Lee, Ji Yeon Ryu

Research output: Contribution to journalArticlepeer-review

4 Scopus citations


This study investigates the relationship between managerial ability and opportunistic behavior, especially hoarding negative information. Borrowing self-regulation resource theory, we expect that competent managers may have fewer self-regulation resources and are more likely to engage in bad news hoarding because they are exposed to chronic stress to prove their ability by satisfying a high goal. The empirical result supports our anticipation. Furthermore, we also find that a talented manager's opportunistic behavior varies by a firm's earnings persistence and information environment. Our findings provide a more direct link between managerial ability and unethical behavior and extend the line of studies documenting the potential dark side of managerial ability.

Original languageEnglish
Article number101836
JournalFinance Research Letters
StatePublished - Jul 2021


  • Bad news hoarding
  • Manager ability
  • Opportunistic behavior
  • Self-regulation


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