In this article, we examine whether internal governance, the process through which subordinate managers effectively monitor the chief executive officer (CEO), can improve a firm's liquidity. Using the difference in horizons between a CEO and his immediate subordinates to measure internal...

We examine the relation between passive ownership and financial reporting quality measured by Beneish's (1999) earnings' manipulation score (M-score). We find that passive ownership is negatively related to M-score and to the likelihood of being designated as a “manipulator” firm. However,...

We study the relationship between female representation on boards and firm value and profitability in Turkey from 2011 to 2018, relying on hand-collected data covering the vast majority of listed firms. We build several proxies of female representation on boards and find no evidence that female...

In the year 2009, then Chairman, Satyam Computers Limited (hereafter Satyam Computers), India confessed to financial irregularities leading to a series of grave felonies including financial and securities fraud of massive proportion. In his statement he confessed that the misstatement in the...

We hypothesize that CSR serves as a control mechanism to reduce deviations from optimal risk taking, and therefore, CSR curbs excessive risk taking and reduces excessive risk avoidance. Based on the stakeholder theory, firms with CSR focus must balance the interests of multiple stakeholders, and...

We hypothesize that CSR serves as a control mechanism to curb excessive risk taking and to reduce excessive risk avoidance. Firms with CSR focus must balance the interests of multiple stakeholders, and therefore, must allocate resources to satisfy both investing and noninvesting stakeholders'...

In this paper, we investigate the consequences of fraud for CEOs and whether these consequences depend on CEO power. We find that CEO power can reduce the likelihood of director turnover as well as CEO turnover after fraud detection. Further, we find that CEO power is negatively related to...

Objective – Financial distress is referred to as a condition in which a company's operations result in insufficient funds to meet its obligations (insolvency). The success or failure of a company greatly depends on the corporate governance of the company. This study aims to identify the...

Given the endogenous and contingent nature of firms' governance choices, it is not surprising that the results of prior studies investigating the association between board attributes and firm performance are mixed. In this paper, we exploit the presence of an exogenous shock represented in the...

This paper documents how the net profit margin of private firms improves when the CEOs of the companies relocate their primary residence to be closer to the corporate headquarters. By reviewing 127 Korean non-public companies belonging to 66 private business groups, we find that the top managers...