Does enterprise risk management bolster investor confidence? Evidence from options‐based restatement contagion, investment, and misstatements
利用行业重述传染作为外部负面冲击，研究发现企业风险管理能抑制过度投资和盈余错报，并减少隐含波动率偏斜的上升，从而增强投资者信心。
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.