Prior studies show stock liquidity improves price informativeness and strengthens governance. Stock price informativeness offers an incentive for managers with equity-based compensation to avoid tax. Strengthening governance, by contrast, reduces tax avoidance if diverting corporate profits for...

We find that boardroom centrality formed by sharing directors across firms can significantly increase firms' systematic risk. This positive effect is stronger when the shared directors also sit on the boards of other large firms or of firms included in the stock market index. It is also stronger...