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Managerial Objectives, the R-Rating Puzzle and the Production of Violent Films

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  • S. Ravid
  • Suman Basuroy

Abstract

We analyze project choice in the motion pictures industry and find evidence consistent with revenue maximization and excessive hedging. We focus on the production of violent films and films that feature sex and violence. We find that such movies do not provide excess returns, but they increase revenues, particularly in the international market. Further, they tend to lose money

Suggested Citation

  • S. Ravid & Suman Basuroy, 2003. "Managerial Objectives, the R-Rating Puzzle and the Production of Violent Films," Yale School of Management Working Papers ysm383, Yale School of Management.
    • Handle: RePEc:ysm:wpaper:ysm383
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    File URL: https://repec.som.yale.edu/icfpub/publications/2396.pdf
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