We investigate the link between firm size and risk-taking among financial institutions during the period of 1998-2008 and make three contributions. First, size is positively correlated with risk-taking measures even when controlling for other observable firm characteristics. This is consistent...

This study explores the relationships between firm performance and the incentive and entrenchment effects of corporate governance structures. It analyzes whether the benefits of providing stock ownership to directors are greater than the potential costs of entrenching officers and directors....

Milton Friedman's admonition 50 years ago that the modern corporation should maximize shareholder value remains controversial. We argue that under certain broad assumptions, the admonition remains a good place to start. To strengthen the prospects for success of long-term shareholder value...

We consider 134 countries during the period 1984-2019 and find a significant positive relation between Rule of Law (law and order provided by police and courts, respect for private property rights) and GDP per capita. Notably, this positive relation is getting stronger with time. This positive...