Many indicators have been developed at international level to evaluate the quality of corporate governance. In this paper, the fundamental elements and limitations of existing indicators are discussed. Among these indicators, particular attention has been focused on the Gim Index, an index...

Within the discussion about an efficient corporate governance system, considerable attention has been paid to the supervisory board's responsibility to monitor top executives raising the question about the value relevance of supervisory board's actions (i.e., control). We conduct an event study...

Shareholder activism has been overlooked in Hong Kong (HK) — Asia's global financial centre and the gateway for investors to access the China Mainland markets. The HK Disclosure of Interests regime provides insufficient information on activist investments to the public, as compared to The...

This paper investigates the role of top management and board interlocks between acquirers and targets. I hypothesize that an interlock may exacerbate agency problems due to conflicting interests and lead to value-decreasing acquisition. An interlock may also serve as a conduit of information and...

We use an unanticipated court ruling in a lawsuit against Citigroup claiming corporate waste related to CEO pay to analyze court intervention as an alternative governance mechanism in cases of excess pay. We find a negative relation between announcement returns and excess pay, consistent with...

The manner in which hostile takeovers have historically been executed has just begun to receive serious academic attention. Similarly, while the literature on the accuracy and determinants of share prices is voluminous, there has been little systematic historical analysis of when and how modern...

Blockholder disclosure thresholds shape incentives for hedge fund activism, which are jointly determined with real investment and managerial behavior. Uninformed investors value lower thresholds (greater transparency) when the cost of trading against an informed activist outweighs the benefits...

We examine how board monitoring affects the ability of short sellers to correctly predict earnings surprise and the profitability of short selling. The results show that short sellers’ predictions are less accurate in firms with independent boards relative to firms with non- independent...

This paper aims to analyze the relation between business models, quality of governance and performance achieved by banks during the period 2005-2008. Coherently with a substantial literature which has spent its effort on researching for the relation between quality of governance and banks’...

It is widely argued that foreign investment is a mechanism for improving corporate governance in emerging markets. The results of this paper, which uses firm-level data on 365 Thai firms, challenge this conventional wisdom. A firm-specific index of the quality of corporate governance is...