Manager incentives are viewed as being better aligned with those of shareholders when they have an ownership stake in the firms they manage. However, manager ownership can exacerbate agency problems by better enabling managers to pass shareholder resolutions. We outline a model of strategic...

Standard setters have expressed concern over the impact of complex accounting standards on the information gap between firm insiders and financial statement users. We address this issue by examining the relationship between accounting reporting complexity (ARC) and the market response to...

I examine the effect of blockholder board representation on a borrower's terms of debt. I document an inverse relationship with both the variable interest rate and count of loan covenants, consistent with debtholders viewing blockholder-directors favorably. Despite being an inherently active...