If overstatements were a symptom of the agency conflict, pay-for-performance sensitivities should have increased in response to the additional penalties for misreporting imposed by SOX. Our finding of their decrease is inconsistent with the view that overstatements were an unintended consequence...

We examine whether corporate governance matters for firms facing financial distress by investigating the failure rate of Internet firms after the Internet shakeout. We theorize that financial crisis changes the relative costs and benefits of governance mechanisms. As a result, we suggest that...

This paper examines listing location as a managerial decision by using a sample of IPOs of Chinese entrepreneurial firms in mainland China, the United States and Hong Kong. We find that Chinese entrepreneurial firms managed by CEOs with international experience are more likely to undertake...

We empirically examine two competing claims: first, if a firm's Corporate Social Responsibility (CSR) activity is driven by its CEO's private rent extraction (i.e. an agency problem), firms with higher CSR ratings are poorly governed and their managers are less likely to be dismissed for poor...

Research on the nature and value of firms’ dynamic capabilities has produced contradictory propositions and findings. Scholars have argued that contingency theorizing has the potential to improve our understanding, as the context in which dynamic capabilities are deployed may affect their...

Corporate governance is a recent concept that encompasses the costs caused by managerial misbehavior. Corporate governance is concerned with how organizations in general, and corporations in particular, produce value and how that value is distributed among the members of the corporation, its...

Digitalization has brought profound changes to enterprises. As the main decision maker of firm, manager has an important impact on the digital transformation of enterprises that cannot be ignored. Based on the perspective of managerial heterogeneity, we tested the impact of managerial ability on...

Governance at banks, especially major banks, requires further reform, especially with respect to incentives. Supervisors are concerned that incentives may make executives prone to take “excessive” risks. Shareholders are concerned that banks rarely earn their cost of capital.What's needed is...

CEO social activism is increasingly common, but little is known about the motivations and the economic consequences. In this paper, I show that CEO social activism is linked to political polarisation in the US. Social activism is concentrated in states with higher within state political...