Showing 1 - 10 of 12
We examine the effect of second-generation state antitakeover laws (ATLs) on accounting conservatism. We adopt a novel methodology that corrects for selection bias resulting from firms' endogenous incorporation decision. Focusing on the period from when these ATLs became constitutional, we find...
Persistent link: https://www.econbiz.de/10012982991
We examine the effect of audit committee social diversity on financial reporting quality, as measured through gender, age, and/or ethnic diversity. Considering these dimensions simultaneously, we find that only ethnic diversity is associated with a lower likelihood of financial statement...
Persistent link: https://www.econbiz.de/10012840486
This study explores the impact of societal trust on the economic behavior of nonprofit organizations. Although prior studies reveal that trust has a positive impact on the economic behavior of for-profit firms, the institutional differences between the two organization types make it unclear...
Persistent link: https://www.econbiz.de/10012935971
Through close interactions with their CEO and CFO, independent directors as well as subordinate executives can assess the overconfidence of their CEO and CFO. We show that independent directors and subordinate executives trade on this assessment, albeit differently. Independent directors of a...
Persistent link: https://www.econbiz.de/10013403355
We examine the impact of analyst coverage on corporate tax aggressiveness. To address endogeneity concerns, we perform a difference-in-differences analysis using a setting which causes exogenous decreases in analyst coverage. Our tests identify a negative causal effect of analyst coverage on tax...
Persistent link: https://www.econbiz.de/10013006587
We explore the effect of corporate opacity on the relation between staggered boards and firm value. We find that through mitigating takeover pressure, staggered boards become increasingly beneficial to firm value as opacity increases. In addition, we document that staggered boards reduce value...
Persistent link: https://www.econbiz.de/10013063306
We examine firms' tax avoidance behavior in response to external investor inattention. We argue that reduced investor attention raises incentivized managers' needs to maintain firm growth and sustain financial resources, leading to more tax avoidance. We exploit a unique setting where peer firms...
Persistent link: https://www.econbiz.de/10012830115
We examine whether takeover protection exacerbates or mitigates real earnings management (i.e., using abnormal real activities to meet near-term earnings targets). Consistent with Stein’s (1988) prediction that takeover pressure induces managerial myopia, we find that less-protected firms are...
Persistent link: https://www.econbiz.de/10014040968
We examine how the threat of exit by non-blockholders (investors with ownership 5%) relates to firms’ income smoothing. Unlike informed blockholders, non-blockholders lack private information and therefore rely more on reported accounting numbers to evaluate firm performance. To isolate the...
Persistent link: https://www.econbiz.de/10014361475
We examine the role of institutional investors in firms¡¯ innovation strategies. We find that although institutional shareholding is positively related to the likelihood of patenting, it is not related to firms¡¯ exploratory innovation activities. Moreover, the presence of a block...
Persistent link: https://www.econbiz.de/10011267754