This paper focuses on the pay level of the highest paid executive directors, which we label as “Executive Director’s Organizational Level” (henceforth EDOL), to raise the question if highest paid CEOs invest heavily in innovative projects. Two-stage least squares (2SLS) regressions show...

The recent financial crisis has led to a major debate about fair-value accounting. Many critics have argued that fair-value accounting, often also called mark-to-market accounting, has significantly contributed to the financial crisis or, at least, exacerbated its severity. In this paper, we...

The recent financial crisis has led to a vigorous debate about the pros and cons of fair-value accounting (FVA). This debate presents a major challenge for FVA going forward and standard setters' push to extend FVA into other areas. In this article, we highlight four important issues as an...

One of the primary roles of corporate boards is to control the processes by which top executives are assessed and if necessary replaced. CEO turnover cannot be viewed in isolation because it affects the behavior of the involved players and hence interacts with other organizational goals. This...

Internet Financial Reporting (IFR) is voluntary in nature. With no specific regulations for IFR, there is a disparity of IFR practices among companies. Some companies disclose only partial financial statements using a low level of technology, while others disclose full sets of financial reports...

Our paper approaches “transparency” as a requirement for market discipline from a different perspective – the researchers one - presenting an overview image of the economic theories derived from these concepts, by analyzing and discussing positive arguments and negative reasons for...

This study analyses the effect of board diversity (gender and nationality) on performance in banks. By making use of a sample of 159 banks in nine countries during the period 2004–2010, our empirical evidence shows that gender diversity increases bank performance, while national diversity...

Imagine that you are considering an investment in a new public offering of a firm's shares. The firm's officers make a presentation that includes an audited financial statement, an earnings forecast reviewed by its prestigious investment bankers, and an impressive demonstration of its new...

We investigate whether a firm’s disclosure policy is affected by the changing corporate setting and intensified corporate governance associated with private equity (PE) investments. For a unique sample of unquoted PE backed firms we observe a significant switch to increased financial...