Logo colour, earnings management and firm value

Tao CHEN*

*Corresponding author for this work

Research output: Journal PublicationsJournal Article (refereed)peer-review

3 Citations (Scopus)

Abstract

I document a new channel that can be used by managers who can take advantage of investors preference for logo colours to influence their perception of the financial reports and thus indirectly affect firm value. Evidence suggests that firms having warm colours as a major logo colour, fewer colours used in the logo, and recognizable elements in the logo are associated with lower earnings management and higher firm value. My findings remain stable across different robustness checks.

Original languageEnglish
Pages (from-to)459-475
Number of pages17
JournalPrague Economic Papers
Volume25
Issue number4
DOIs
Publication statusPublished - 2016
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2016, University of Economics - Prague. All rights reserved.

Keywords

  • Colour
  • Earnings management
  • Firm value
  • Logo

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