Information technology (IT) is all-pervading, and as an infrastructure, it is likely to mold institutional quality. As such, we examine whether IT availability and use moderate the relationship between country-level institutional quality and firm performance. Using the Economic Freedom Index of...

We consider an investor’s choice of conservative reporting, bonus payments, and investment decisions in the presence of the hidden-information agency problem of a manager’s productivity and the hidden-action agency problem of a manager’s diversion of resources. It is important to consider...

We examine the causal effects of corporate governance on earnings management using shareholder-sponsored proposals that pass or fail by a small margin of votes in annual shareholder meetings. This setting provides a causal estimate that overcomes concerns of endogeneity. Specifically, compared...