We examine the role of information-based stock trading in affecting the risk-incentive relation. By incorporating an endogenous informed trading into an optimal incentive contracting model, we analytically show that, apart from reducing incentives, a greater risk increases the level of...

We assess the impact of the Sarbanes-Oxley Act of 2002 on corporate investment in an investment Euler equation framework. We allow a dummy for the passage of the Act to affect the rate at which managers discount future investment payoffs. Using generalized method of moments estimators, we find...

1. The Improbably Surge of Corporate China -- 2. What Is in a Great Company? -- 3. Does ROIC Apply to Corporate China? -- 4. The “Great” Hope Struggles -- 5. It Is Also About Corporate Governance -- 6. The Perils of Diversification -- 7. Shake up the Foundations -- 8. The Beginning of A...