Journal ArticleDOI
Corporate governance, accounting and finance: A review
TLDR
In this article, accounting and finance research on corporate governance (CG) is reviewed, focusing on a particularly vexing issue, namely endogeneity in the relationships between CG and other matters of concern to accounting and financial scholars, and suggest ways to deal with it.Abstract:
We review accounting and finance research on corporate governance (CG). In the course of our review, we focus on a particularly vexing issue, namely endogeneity in the relationships between CG and other matters of concern to accounting and finance scholars, and suggest ways to deal with it. Given the advent of large commercial CG databases, we also stress the importance of how CG is measured and in particular, the construction of CG indices, which should be sensitive to local institutional arrangements, and the need to capture both internal and external aspects of governance. The ‘stickiness’ of CG characteristics provides an additional challenge to CG scholars. Better theory is required, for example, to explain whether various CG practices substitute for each other or are complements. While a multidisciplinary approach to developing better theory is never without its difficulties, it could enrich the current body of knowledge in CG. Despite the vastness of the existing CG literature, these issues do suggest a number of avenues for future research.read more
Citations
More filters
Journal ArticleDOI
Board Composition Beyond Independence: Social Capital, Human Capital, and Demographics
TL;DR: There is a growing literature that investigates the composition of directors' demography, human capital, and social capital as discussed by the authors, which is a critical element in the ability of the board to impact firm outcomes.
Journal ArticleDOI
Comprehensive Board Diversity and Quality of Corporate Social Responsibility Disclosure: Evidence from an Emerging Market
TL;DR: In this paper, the authors examined the relationship between wide-ranging board diversity and the quality of corporate social responsibility (CSR) disclosure variables in Malaysia using 200 listed firms in Bursa Malaysia during 2009-2013 and applying both OLS and 2SLS instrumental variables (IV) approaches.
Journal ArticleDOI
Corporate Governance, Risk Disclosure Practices, and Market Liquidity: Comparative Evidence from the UK and Italy
Tamer Elshandidy,Lorenzo Neri +1 more
TL;DR: In this article, the authors examined the influence of corporate governance on risk disclosure practices in the UK and Italy and also studied the impact of those practices on market liquidity, finding that strongly rather than weakly governed firms exhibiting risk information voluntarily rather than mandatorily improves market liquidity significantly.
Journal ArticleDOI
The impact of board and audit committee characteristics on voluntary disclosure: a meta-analysis
TL;DR: In this paper, the authors apply meta-analysis to a sample of 64 empirical studies to identify potential moderators to the relationship between board, audit committee characteristics and voluntary disclosure, and find that, while board size, board composition and audit committee have a significant positive effect on voluntary disclosure and CEO duality has a significant negative impact.
Journal ArticleDOI
Ownership concentration and corporate performance from a dynamic perspective: Does national governance quality matter?
TL;DR: In this article, the authors investigated the relationship between ownership concentration and financial performance of companies in Singapore and Vietnam in a dynamic framework and found that the performance effect of concentrated ownership persists in these markets even after the dynamic nature of the ownership concentration-performance relationship is taken into consideration.
References
More filters
Journal ArticleDOI
Theory of the firm: Managerial behavior, agency costs and ownership structure
TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
Journal ArticleDOI
Sample Selection Bias as a Specification Error
TL;DR: In this article, the bias that results from using non-randomly selected samples to estimate behavioral relationships as an ordinary specification error or "omitted variables" bias is discussed, and the asymptotic distribution of the estimator is derived.
Journal ArticleDOI
Another look at the instrumental variable estimation of error-components models
Manuel Arellano,Olympia Bover +1 more
TL;DR: In this paper, a framework for efficient IV estimators of random effects models with information in levels which can accommodate predetermined variables is presented. But the authors do not consider models with predetermined variables that have constant correlation with the effects.
Journal ArticleDOI
Specification Tests in Econometrics
TL;DR: In this article, the null hypothesis of no misspecification was used to show that an asymptotically efficient estimator must have zero covariance with its difference from a consistent but asymptonically inefficient estimator, and specification tests for a number of model specifications in econometrics.
Posted Content
Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers
TL;DR: In this paper, the benefits of debt in reducing agency costs of free cash flows, how debt can substitute for dividends, why diversification programs are more likely to generate losses than takeovers or expansion in the same line of business or liquidationmotivated takeovers, and why the factors generating takeover activity in such diverse activities as broadcasting and tobacco are similar to those in oil.