Although the role of institutional investors as shareholders has been widely studied, the literature provides little evidence on the role of institutional investors as directors. Therefore, this article analyzes the influence of directors who represent institutional investors in three aspects of...

We contend that corruption must be detected as soon as possible so that corrective and preventive measures may be taken. Thus, we develop an early warning system based on a neural network approach, specifically self-organizing maps, to predict public corruption based on economic and political...

This paper analyzes the relation between corporate risk-taking and firm performance for a sample of 791 firms from 21 OECD countries over the period 2001–2013. Following a critical realist paradigm, we use prospect theory to posit that corporate risk-taking depends on the gap between target...

We test hypotheses about the structure of corporate debt ownership and the use of bank debt by firms in a civil-law country, Spain. We focus on bank debt effects in the presence of information asymmetries and agency costs, and on efficient versus inefficient firm liquidation. We find that the...

We study the legal provisions of 92 European systemic banks from 18 countries over the years 2008-2017. Since legal provisions may be viewed as a mechanism for disclosing information to capital markets, the creation of legal provisions is determined by the risk taken by the bank and the...

Compared to the Anglo-Saxon framework on which most of the financial research has focused, in many European corporate systems such as Spain, banks and other financial intermediaries are more important than capital markets. In addition to lending, banks usually own significant proportions of...

This paper tests the hypothesis that stress tests are primarily a function of the fundamental financial condition and operating environment of individual banks, rather than alternative adverse economic and financial scenarios imposed by regulators. We develop a novel early warning system based...

We analyze the relation between capital structure, ownership structure, and corporate value for a sample of 1,216 firms from 15 European countries. Our results stress two different conflicts of interest and show the differential role played by the mechanisms of corporate control depending on the...

In this paper, the influence of large shareholders on earnings management in family-owned firms is analyzed using a sample of firms from nine European countries. How contests for control for the largest shareholder and the existence of a controlling coalition in family-owned firms affect...

This paper analyzes the presence of financial constraints for investment in innovation in Brazil. Dynamic investment models are estimated for a panel dataset of 206 Brazilian nonfinancial firms in the period 1995-2006. Results show that innovation of Brazilian firms is subject to financial...