Showing papers in "Journal of Financial Economics in 2008"

TL;DR: The anti-self-dealing index as mentioned in this paper is a measure of legal protection of minority shareholders against expropriation by corporate insiders, which is calculated for 72 countries based on legal rules prevailing in 2003, and focuses on private enforcement mechanisms such as disclosure, approval, and litigation, that govern a specific selfdealing transaction.

TL;DR: In this paper, the authors examined the relation between firm value and board structure and found that complex firms, which have greater advising requirements than simple firms, have larger boards with more outside directors, and this relation is driven by the number of outside directors.

TL;DR: In this article, the authors analyzed the impact of CEO overconfidence on mergers and acquisitions and found that overconfident CEOs over-estimate their ability to generate returns, both in their current firm and in potential takeover targets.

TL;DR: Using governance metrics based on antitakeover provisions and inside ownership, the authors found that firms with weaker corporate governance structures actually have smaller cash reserves. But there is only limited evidence that the presence of excess cash alters the overall relation between governance and profitability.

TL;DR: In this paper, the authors examined the corporate board structure, trends, and determinants, and found that board structure across firms is consistent with the costs and benefits of the board's monitoring and advising roles.

TL;DR: This article studied the role of institutional investors around the world using a comprehensive data set of equity holdings from 27 countries and found that all institutional investors have a strong preference for the stock of large firms and firms with good governance, while foreign institutions tend to overweight firms that are cross-listed in the U.S and members of the Morgan Stanley Capital International World Index.

TL;DR: In this article, the authors investigate how financial and institutional development affects the financing of large and small firms and find that protection of property rights increases external financing of small firms significantly more than of large firms, mainly due to its effect on bank finance.

TL;DR: This paper found that companies that provided contributions to elected federal deputies experienced higher stock returns than firms that did not around the 1998 and 2002 elections, suggesting that contributions help shape policy on a firm-specific basis.

TL;DR: This article found that board size is negatively associated with the variability of monthly stock returns, annual accounting return on assets, Tobin's Q, accounting accruals, extraordinary items, analyst forecast inaccuracy, and R&D spending.

TL;DR: This paper examined the influence of analysts' influence on managers' earnings management decisions and found that firms followed by more analysts manage their earnings less, and that analysts from top brokers and more experienced analysts have stronger effects against earnings management.

TL;DR: This article study the effect of financial restatement on bank loan contracting and find that loans initiated after restatements have significantly higher spreads, shorter maturities, higher likelihood of being secured, and more covenant restrictions.

TL;DR: In the US, Canada, UK, Germany, France, and Japan, the propensity to pay dividends is higher among larger, more profitable firms, and those for which retained earnings comprise a large fraction of total equity as discussed by the authors.

TL;DR: This article used mutual fund flows as a measure of individual investor sentiment for different stocks, and found that high sentiment predicts low future returns, which is related to the value effect: high sentiment stocks tend to be growth stocks, interpretable as companies increasing the supply of shares in response to investor demand.

TL;DR: In this paper, the authors find that short-horizon return predictability from order flows is an inverse indicator of market efficiency, and that such predictability is diminished when bid-ask spreads are narrower, and has declined over time with the minimum tick size.

TL;DR: In this paper, the authors analyze how directors with financial expertise affect corporate decisions and find that financial experts exert significant influence, though not necessarily in the interest of shareholders, and that increasing financial expertise on boards may not benefit shareholders if conflicting interests (e.g., bank profits) are neglected.

TL;DR: In this paper, the determinants and consequences of investor activism in venture capital are examined using a hand-collected sample of European venture capital deals, showing the importance of human capital.

TL;DR: In this paper, the authors investigate the relation between corporate value and the proportion of the board made up of independent directors in 799 firms with a dominant shareholder across 22 countries and find a positive relation, especially in countries with weak legal protection for shareholders.

TL;DR: This article examined how the relation between earnings and payout policy has evolved over the last three decades and found that repurchases are increasingly used in place of dividends, even for firms that continue to pay dividends.

TL;DR: In this article, the authors find that changes in oil prices strongly predict future stock market returns in many countries in the world and find statistically significant predictability in 12 out of the 18 countries and in a world market index.

TL;DR: In this article, the authors investigate the effect of local banking development on firms' innovative activities, using a rich data set on innovation for a large number of Italian firms over the 1990s.

TL;DR: The authors track the fortunes of all 2,206 individuals identified as responsible parties for all 788 Securities and Exchange Commission (SEC) and Department of Justice (DOJ) enforcement actions for financial misrepresentation from January 1, 1978 through September 30, 2006.

TL;DR: This paper examined whether analysts resident in a country make more precise earnings forecasts for firms in that country than non-resident analysts and found an economically and statistically significant local analyst advantage even after controlling for firm and analyst characteristics.

TL;DR: In this paper, the authors estimate latent factor models of liquidity, aggregated across various liquidity measures, and find that across-measure systematic liquidity is a priced factor while within measure systematic liquidity does not exhibit additional pricing information.

TL;DR: This paper proposed a new measure of VC firm reputation and analyzed its performance implications on private companies, finding companies backed by more reputable VCs by initial public offering (IPO) capitalization share (based on cumulative market capitalization of IPOs backed by the VC), are more likely to exit successfully, access public markets faster, and have higher asset productivity at IPOs.

TL;DR: This paper examined the role of the media in monitoring and influencing executive compensation practice using more than 11,000 press articles about CEO compensation from 1994 to 2002, finding that negative press coverage is more strongly related to excess annual pay than to raw annual pay.

TL;DR: In this article, the authors examined the wealth effects of distress and bankruptcy filing for suppliers and customers of filing firms and found that on average, important wealth effects occur prior to and at bankruptcy filings and extend beyond industry competitors along the supply chain.

TL;DR: In this paper, the authors construct a unique dataset of family trees and business groups for 93 of the largest business families in Thailand and find a strong positive association between family size and family involvement in the ownership and control of the family businesses.

TL;DR: This article examined the motivations for public equity offers, using a sample of 17,226 initial public offerings and 13,142 seasoned equity offerings from 38 countries between 1990 and 2003, and estimated the uses of funds raised in both initial and seasoned offerings.

TL;DR: The authors examine cash dividends and share repurchases from 1989 to 2005 in 15 nations that were members of the European Union before May 2004 and show that financial reporting frequency is associated with higher payout.