We explore the relationship between internal governance and the disciplining mechanisms created by the threat of short selling (i.e. “short-selling potential”). We argue that the presence of short selling increases the cost of agency problems for shareholders and incentivizes them to improve...

This study investigates how board networks affect the directors’ decision to retain auditors who are industry experts. Based on the unique data in Taiwan, where the audit report is issued in the name of two signing auditors as well as the audit firm, we find that a firm is more likely to...

In this paper, we have developed a corporate governance index for 500 large listed Indian firms from 2008 to 2011. The index construction utilizes information on six important corporate governance mechanisms namely the board of directors, the audit committee, the board committees and disclosure...

This research aimed to determine whether the environmental performance and Good Corporate Governance (GCG) mechanisms, such as managerial ownership, institutional ownership, the proportion of independent commissioners had effects of the audit committee on measured financial performance by using...

This paper uses US data to provide evidence regarding the relationship between earnings informativeness and different levels of insider shareholding including insider entrenchment. At medium levels of insider shareholding (convergence of interests e.g., 5 percent and 25 percent), there is a...

This paper provides empirical evidence that audit committee independence is associated with economic factors. I find that audit committee independence increases with board size and board independence and decreases with firm's growth opportunities and for firms that report consecutive losses. In...

Purpose – The purpose of this paper is to shed light on the European Union’s (EU) latest regulatory principles for environmental, social and governance (ESG) disclosures. It explains how some of the EU’s member states are ratifying the EU Commission’s directives on ESG reporting by...

Managers in their terminal years have an incentive to manipulate earnings to enhance earnings based bonuses. We examine this horizon problem by considering the role of the compensation committee in setting terminal-year compensation. We predict that compensation committees are aware of the...

We examine the effect of uncertainty shocks on the level of fiscal guidance – the guidance issued by governments on the expected evolution of the fiscal and economic outlook. Because uncertainty makes governments’ expectations less precise but potentially more valuable to users, we...

From a theoretical point of view, corporate social responsibility (CSR) disclosure actions have associated a large list of benefits as result of the lower information asymmetry problems that provoke firms enjoy better financial conditions and higher market value. However, empirically there is no...