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The purpose of this paper is to examine the impact of career concerns on CEOs’ use of expectations management to meet or beat analysts’ quarterly earnings forecasts. The authors posit that early career-stage CEOs are less (more) likely to use expectations management than are late career-stage CEOs if the market views expectations management as an opportunistic strategy (efficient process) due to reputational capital concerns.

The authors obtain data for CEO career stages and CEO compensation from ExecuComp, analyst earnings forecasts from the detailed I/B/E/S database, financial statement data from quarterly Compustat and stock returns from the daily CRSP database over the period 1992–2013.

The results are consistent with the opportunistic hypothesis and early-stage CEOs seeking to build reputational capital by avoiding the perception of engaging in an inefficient managerial strategy. The authors find robust evidence that late career-stage CEOs are more likely to engage in expectations management than early career-stage CEOs. Furthermore, the authors show that late career-stage CEOs tend to employ expectations management to boost the value of their equity-based compensation.

The findings have important implications because the authors document a different implication of the “horizon problem” related to CEOs’ opportunistic forecasting behavior and the manipulation of analysts’ forecasts for CEOs who are approaching retirement.

The results have practical implications for analysts who provide earnings forecasts for firms whose CEOs are in early or late career stages and for investors who use such analysts’ forecasts in firm valuation models.

The authors contribute to the literature on expectations management by documenting how reputational incentives of CEOs affect the likelihood that managers engage in expectations management. The authors show that an important managerial incentive to engage in expectations management is CEO career concerns. Furthermore, the authors show that CEOs who are in early stages of their careers choose not to engage in expectations management due to the market’s perceived degree of opportunism pertaining to this strategy.

Resurgent interest in the life and work of the Italian Cambridge economist Piero Sraffa is leading to New Directions in Sraffa Scholarship. This chapter introduces readers to some of these developments. First and perhaps foremost is the fact that as of September 2016 Sraffa’s archival material has been uploaded onto the website of the Wren Library, Trinity College, Cambridge University, as digital colour images; this chapter introduces readers to the history of these events. This history provides sharp relief on the extant debates over the role of the archival material in leading to the final publication of Production of Commodities by Means of Commodities, and readers are provided a brief sketch of these matters. The varied nature of Sraffa scholarship is demonstrated by the different aspects of Sraffa’s intellectual legacy which are developed and discussed in the various entries of our Symposium. The conclusion is reached that we are on the cusp of an exciting phase change of tremendous potential in Sraffa scholarship.

How are we to make sense of the attitudes of Social Democratic parties towards decentralisation? What do they think about what is a legitimate territorial allocation of power? What factors shapes this view? And what makes Social Democratic parties change their minds? This article addresses these questions by way of competing ideological traditions, the external strategic incentives and internal constraints. Empirically, the article presents a comparative case-study analysis of Social Democratic parties in four countries (Belgium, Italy, Spain and United Kingdom). On the basis of this analysis, I argue that the positioning of Social Democratic parties on decentralisation is influenced by strategic incentives created by the structure of political competition, whereas the policy shifts are more often produced by factors that are internal to the party. A decentralist policy shift is always associated with the capacity of regionalist parties to set the agenda by exerting pressures on Social Democratic parties. In addition, Social Democratic parties tend to shift their policy while in opposition to distinguish themselves from their centralist mainstream rival in government. The dominant mechanism found across four countries was one in which regional branches persuade the central party leadership to adopt a pro-decentralist position. This chapter illustrates how Social Democratic parties have an instinct for ‘adaptation and control’ in the face of social-structural changes, and it demonstrates that the prevalence of different ideological traditions will vary according to external strategic incentives and, crucially, by the party's internal ability to follow those incentives.