We test the biasedness of unsolicited ratings relative to solicited ratings using the ex post firm performance measured by the long-run stock performance of firms following rating announcements and changes. We find that the announcements of new unsolicited ratings are followed by negative...

This study investigates the cultural determinant of board structure by examining the impact of the geographic divergence of gambling preference induced by religion. Using the county's Catholic-to-Protestant ratio to proxy for gambling preference, we find that firms headquartered in...

This study empirically analyzes the effects of political corruption on corporate cash holdings policy and the impact of cash holdings on firm performance using 97 multinational data. We find that there is a nonlinear cubic function relationship between the political corruption and corporate cash...

The SEC’s NRSRO designation for Japanese credit rating agencies is suitable for examining certification and monitoring effects, as Japanese domestic bond markets are not subject to SEC regulations. We find that the certification increased the market share of new NRSROs (R&I and JCR) compared...

Using a sample of chaebol groups in Korea, we investigate the impact of outside directors who had been public officials on the firm's performance. We find that chaebol-affiliated firms prefer to co-opt the outside directors who had positions of higher public rank than the other outside directors...

We test the biasedness of unsolicited ratings relative to solicited ratings using the ex post firm performance measured by the long-run stock performance of firms following rating announcements and changes. We find that the announcements of new unsolicited ratings are followed by negative...

Since 1995, four presidents have granted six traffic violation pardons in Korea, and 24.6 million individuals have been the beneficiaries of these pardons. The objective of this paper is to explore how costly traffic violation pardons are by finding out the effects of traffic violation pardons...