I investigate whether ownership by blockholders is an important determinant of corporate debt maturity. Using GMM methodology to control for the endogeneity of all regressors, I document an economically significant negative link between short term debt and ownership by blockholders. This...

This paper analyzes market reactions triggered by announcements that hedge funds and private equity investors have purchased large blocks of voting rights. We argue that changes in shareholder wealth are related to the opportunity, possibility, and motivation of being an active blockholder who...

This paper analyzes the effects of the Insider Trading Sanctions Act of 1984, the first federal level insider trading statute since 1934 which substantially increased the penalties of illegal insider trading. I find that, around the passage of the Act on July 25, 1984, there were positive...

The ownership structure is one of the central fields in corporate governance research. Ownership structure metrics provides several measures of shareholder influence. However, there is little empirical evidence to assess the absolute and relative performance of these measures. This gap in the...

Investors are supposed to have greater incentive to vote responsibly when they hold large number of shares in a firm. However, using mutual fund voting records, we find that when funds hold more shares, they become more likely to vote for management, even when proposals may be damaging to...

Finding a mutually satisfactory solution to valuation problems in arbitrational proceedings usually requires the arbitral tribunal in charge to mandate an impartial appraiser. From an agency theory perspective, this valuation expert's role is ambiguous, since on the one hand, the latter serves...

Existing literature has documented a lot of research efforts on the issues of corporate diversification discount and diversification premium, most of them trying to explain the rationales why firms diversify or focus, especially to unveil the benefits and costs of their diversification...

We collect data on CEO pay in 122 closely-held firms traded on the Tel-Aviv Stock Exchange during 1995-2001. After estimating CEO pay performance sensitivity and CEO excess pay, we examine how these two pay attributes affect end of period (year 2001) Tobin's Q. Our main findings and conclusions...

We complement recent research (Ball et al. 2003) which suggests that country-level incentives (i.e. legal origin and the level of capital market development) are the main determinants of the quality of financial reporting. Using a newly developed Brazilian Corporate Governance Index (BCGI) we...

The research reported here sought to identify top managers' mental models about the management of diversification and to determine whether these beliefs are associated with important strategic decisions. The study identified three broad sets of beliefs or orientations about the management of...