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's stock price increases. Further, independent directors with high reputation incentives serve firms that voluntarily disclose … reputation incentives of independent directors. Our results therefore support a causal interpretation of the positive influence … that independent directors with reputation incentives exert on corporate transparency …
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We analyze the rational expectation equilibria of a delegated portfolio management model in which two risky assets have completely independent returns and liquidity shocks. Some managers have perfect information on the assets' returns while others are uninformed and try to infer information from...
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