Risky Business: CEO Risk Tolerance and Non-GAAP Earnings

This research explores the relationship between CEO risk tolerance, as indicated by their involvement in riskier sports hobbies, and its impact on non-GAAP earnings. Utilizing data from CEOs’ sports hobbies and firm-quarter observations, it evaluates whether risk-taking behaviors are reflected in financial disclosures and earnings management. The study applies logistic regression and statistical analysis to uncover patterns in CEO behavior and their financial outcomes.