Chou, Hsin-I; Li, Hui; Yin, Xiangkang - In: Journal of Empirical Finance 17 (2010) 3, pp. 300-312
This paper investigates the conflict of interests between shareholders and debtholders by examining the work effort of outside directors when a company experiences financial distress or has a high financial leverage. We find that at both company level and individual director level: (i) outside...