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 language | English |
|---|---|
| Pages (from-to) | 459-475 |
| Number of pages | 17 |
| Journal | Prague Economic Papers |
| Volume | 25 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 2016 |
Keywords
- Colour
- Earnings management
- Firm value
- Logo