We examine the impact of corporate board reforms around the world on stock price crash risk. Using a sample of firms in 41 economies that passed major board reforms between 1990 and 2012, we find that board reforms are associated with a significant reduction in crash risk of about 13%. The...

Contracting theory asserts that the income statement's primary role is to provide useful information for management performance evaluation. We study the effect of fair value accounting on this role by examining the change in earnings pay-performance sensitivity (PPS) following the 2005 worldwide...