This study investigates whether board reforms affect firms’ capital and labor investment efficiency. Based on difference-in-differences analyses, we show that board reforms improve capital investment efficiency. Importantly, after controlling for capital investment inefficiency, board reforms...

We examine the association between managerial overconfidence and internal controls. We hypothesize and find that firms with overconfident managers are more likely to maintain ineffective internal controls. Moreover, we find no evidence that these managers are more able to mitigate the known...