We investigate the importance of ambiguity, or Knightian uncertainty, in executives' decisions about when to exercise stock options. We develop an empirical estimate of ambiguity and include it in regression models alongside the more traditional measure of risk, equity volatility. We show that...

This paper provides a brief overall view of the previous research carried out on gender diversity and shows how, against all expectations, the presence of women in the boardrooms cannot affect firms’ leverage and total risk. We draw on theories from psychological, social and economic issues...

This study examines the widespread belief that executive pay should reflect firm performance. We compile a hand-collected data set of compensation paid to executive directors of Dutch listed companies and analyze if executive compensation is indeed determined by firm performance. A variety of...

The goal of this study is to compare and contrast the market performance of Brazilian companies that have implemented a full scale EVA financial management system under Stern Stewart amp; Co. guidance with that of the broad national stock market index, the Ibovespa index and also a comparison...

In this paper we offer explanations for why firms began voluntarily adopting the expensing provisions of FAS 123 in the second half of 2002. First, we find that firms with greater publicity exposure are more likely to voluntarily expense stock options, controlling for other factors such as the...

Since academic scholars and the Wall Street Journal reported widespread evidence indicating that option grants to executives were backdated, an avalanche of news stories followed documenting this ever-widening corporate scandal. In this study we ask: quot;How do disclosures of backdating affect...

By addressing the interaction between security market microstructure and the generalized agency conflict between managers and shareholders, we study the effects of informed insider trading on productive efficiency, price discovery, and wealth redistribution. Insider trading can lead...

This study examines how corporate boards respond to investor demands for information on executive compensation practices and whether certain board and compensation committee characteristics, as proxies for board governance quality, are associated with the extent of board disclosure of...

The pervasiveness of option backdating practices has resulted in broad regulatory scrutiny, formal investigations by federal authorities and internal inquiries by more than 200 implicated companies. Prior studies (Yermack 1997; Aboody and Kasznik 2000; Lie 2005; Heron and Lie 2006) find a pattern of timing...

We show that female directors have a significant impact on board inputs and firm outcomes. In a sample of US firms, we find that female directors have better attendance records than male directors, male directors have fewer attendance problems the more gender-diverse the board is, and women are...