This study reports how country risk and macroeconomic conditions influence the wealth gains of U.S. financial firms involved in international mergers and takeovers. The findings suggest that U.S. financials experience weakly significant wealth gains around announcement date. The wealth gains are...

We examine the value shareholders attribute to one euro of extra cash held by Spanish firms and how corporate governance impacts this value by comparing the value of cash for companies with good and poor governance. The results show that one euro of extra cash is valued at a considerable premium...

A domino effect can accelerate the spread of financial crises. Some firms, however, show better resistance than others thereby limiting the spread. Effective governance mechanisms enhance the ability of firms to absorb a stock market crisis. In a sample of Société des Bourses Françaises (SBF)...

This paper studies the relationship between firms' corporate governance quality and information content of stock trades. Following Hasbrouck (1991) method, a trade's information content is defined as persistent impact of trade innovation on stock price. Using firm-level governance data, we show...

The study investigates the predictors of credit risk in the universal banking industry with panel data from universal banks in Ghana and finds that leverage, assets (size), loan loss provision, board size, board independence, and the number of executive directors on the board of a bank are the...

Market reaction to mergers and acquisitions is a popular research topic in finance. It has been well documented in empirical literature that target companies earn significant abnormal market returns in corporate acquisitions. However, the effects of stock market crashes, and the effects of...

This paper empirically tests the determinants of executive pay. In order to gain more understanding of the fat cat problem that have been subject to hot debate, we also examine a sample firms that suffer from the fat cat problem, defined as firms with poor performance while their Chief Executive...

This paper investigates whether the managers of industry rivals act to mitigate their agency exposure and improve operating performance when one of the firms in the industry is subject to a takeover attempt. The results indicate that rival firms in general decrease free cash flows, improve...

Prior studies on the relationship between ownership and firm performance have produced mixed results; hence, this paper re-examines the relationship using an unbalanced panel pooled sample of 4,443 observations listed in the emerging Taiwanese market. We adopt a dynamic perspective to explore...

This paper investigates the relationship between key factors of board composition and firm performance. We find that listed companies in Taiwan are suffered from the divergence between stock-control rights and earnings distribution rights, and the divergence of rights is negatively associated...