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Using the SEC regulations (following the Sarbanes–Oxley Act) on board independence as an identification for externally imposed governance changes, I compare its influence on firm performance to the effect of voluntarily conducted adjustments. Controlling for companies with voluntary changes,...
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policies are discretionary realized within firms by managers, the agents working in the organization will undertake "influence …
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affected by, the choice of governance by other firms. Firms with weaker governance offer managers more generous incentive …
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