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Companies are required to have a reliable system of corporate governance in place at the time of IPO in order to protect the interests of public company investors and stakeholders. Yet, relatively little is known about the process by which they implement one. This Closer Look, based on detailed...
Persistent link: https://www.econbiz.de/10012065143
The hallmark of good corporate governance is an independent board of directors to oversee management. However, it is not clear that independent directors receive the information they need to make fully informed decisions on all key matters. Partly, this is due to an information gap, whereby...
Persistent link: https://www.econbiz.de/10011980147
We examine whether reputable independent directors improve firm performance and governance quality in emerging markets, using data from China. Firms with such directors, measured as the number of directorships in other listed firms, have higher profitability, operating efficiency and...
Persistent link: https://www.econbiz.de/10014281507
This paper presents the extensive literature survey based both on theoretical rationales for hedging as well as the empirical evidence that support the implications of the theory regarding the arguments for the corporate risk management relevance and its influence on the company’s value. The...
Persistent link: https://www.econbiz.de/10014200778
We examine why firms change their main bank and how this affects loans, interest payments and firm performance after switching. Using unique firm-bank matched Ukrainian data, the treatment effect estimates suggest that more transparent and riskier companies are more likely to switch their main...
Persistent link: https://www.econbiz.de/10014204471
One of the most central questions of corporate law is how to deal with controlling shareholders. On the one hand, the presence of a controlling shareholder can benefit the corporation, particularly by subjecting managers to better monitoring. On the other hand, there is always the risk that the...
Persistent link: https://www.econbiz.de/10014224296
The relationship between financial leverage and firm performance is studied in this paper. Financial leverage can positively influence firm performance because leverage can be treated as a tool for disciplining management. As such a positive relationship between financial leverage and firm...
Persistent link: https://www.econbiz.de/10014118575
This study provides evidence that firms adapt to macroeconomic, real, or financial economic uncertainty by decreasing their innovation activities. The way firms adapt is related to both internal factors such as patent types (exploratory versus exploitative patents), asset redeployability, patent...
Persistent link: https://www.econbiz.de/10014083342
We examine whether passage of the Sarbanes-Oxley Act (SOX) in 2002 did in fact have the intended effect of reducing agency conflicts or did it alter managerial incentives in ways that could be detrimental to firm value. Our findings for the full sample suggest a decrease in firm value and the...
Persistent link: https://www.econbiz.de/10012999370
We study how the geographical distance between large debtholders and large shareholders affects firms' risk and risk-shifting incentives. We argue that greater distance reduces debtholders' ability to observe shareholder characteristics and increases their information asymmetry vis-à-vis...
Persistent link: https://www.econbiz.de/10013003405