In listed companies, the Board of directors has ultimate responsibility for information disclosure. The conventional wisdom is that director independence is an essential factor in improving the quality of that disclosure. In a sense, this approach subordinates expertise to independence. We argue...

We investigate the impact of managerial ability on firm innovativeness. We further investigate how managerial ability impacts the association between firm innovativeness and competitive advantage. We employ two measures of managerial ability, namely strategic managerial ability and operational...

If managers are risk-averse and compensation schemes are not directly linked to shareholder wealth, incentives to allocate effort to manage effects of relative and macroeconomic shocks may be distorted. In this paper we develop a simple model to identify factors that determine the optimal...

Macroeconomic fluctuations such as interest rate and exchange rate can be considered sources of good or bad “luck” for corporate performance. Incentive effects of performance-based compensation for management may be weakened or biased by macroeconomic influences depending on the ability of...

In listed companies, the Board of directors has ultimate responsibility for information disclosure. The conventional wisdom is that director independence is an essential factor in improving the quality of that disclosure. In a sense, this approach subordinates expertise to independence. We argue...

Despite differences of opinion regarding what to include as a “top risk” today, many executives agree that 2021 and beyond will likely be a period of uncommonly broad-based risks. Given the breadth of potential exposures, an alternative way to strategically approach both the challenges and...

A numbers of studies focusing on the determinant of the insurance market efficiency haveincreased in the last decade. In fact, many factors, like the CEO's power, can influence the efficiency in the insurance firm. The purpose of this research is to analyze the relationship between efficiency,...

We study, for the first time, whether and how directors' and officers' (D&O) insurance affects independent directors' voting. We provide new evidence that D&O insurance through the insurance channel and the insurance-monitoring channel incentivizes independent directors to monitor. The positive...

The paper presents a model of shareholders' decision to purchase Directors' and Officers' (D&O) insurance for their directors. We consider the tradeoff between the “Governance Enhancing Effect” and the moral hazard effect of D&O insurance and focus on the role of information in determining...

Corporate governance and risk management issues have received prominent publicity in recent years following several major company failures such as Bear Stearns and Lehman Brothers. While prior studies have examined this issue within the context of derivatives' trading, little is known regarding...