Journal ArticleDOI
R2 around the world: New theory and new tests
Li Jin,Stewart C. Myers +1 more
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TLDR
This article showed that lack of transparency increases R2 by shifting firm-specific risk to managers and that opaque stocks with high R2s are also more likely to crash, that is, to deliver large negative returns.About:
This article is published in Journal of Financial Economics.The article was published on 2006-02-01. It has received 1468 citations till now. The article focuses on the topics: Corporate governance & Stock (geology).read more
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Corporate Governance, Firm Performance, and Information Leakage: an Empirical Analysis of the Chinese Stock Market
TL;DR: Wang et al. as discussed by the authors analyzed the effect of corporate governance on firm performance and information leakage in the Chinese securities market and found that the ownership structure of Chinese companies will affect their firm performance.
Journal ArticleDOI
The Impact of Firm‐Level Illiquidity on Crash Risk and the Role of Media Independence: International Evidence
TL;DR: In this paper, the impact of firm-level illiquidity on stock price crash risk was investigated by employing a sample of 21,986 firms across 36 countries spanning the years 1997 to 2007.
Journal ArticleDOI
Corporate social responsibility and information flow
TL;DR: This paper found that a firm's greater commitment to corporate social responsibility (CSR) increases firm-specific information incorporated into stock prices and found that information searches increase around major disclosure events for firms that are more socially responsible, as observed through requests for newly released annual (10K) filings on EDGAR and company ticker searches on Google around earnings announcements.
Journal ArticleDOI
Bank deregulation and stock price crash risk
TL;DR: The authors examined the influence of bank branch deregulation on corporate borrowers' stock price crash risk and found that bank branch reform improves bank monitoring efficiency, thereby reducing borrowing firms' bad news formation and hoarding.
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Economic policy uncertainty and stock price crash risk of commercial banks: Evidence from China
TL;DR: In this article , the authors examined the impact of economic policy uncertainty on the stock price crash risk of commercial banks based on a sample of 32 Chinese A-share listed banks from Q1 2007 to Q4 2019.
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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.
Posted Content
Law and Finance
Rafael La Porta,Rafael La Porta,Florencio Lopez de Silanes,Florencio Lopez de Silanes,Andrei Shleifer,Andrei Shleifer,Robert W. Vishny,Robert W. Vishny +7 more
TL;DR: This paper examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common law countries generally have the best, and French civil law countries the worst, legal protections of investors.
Journal ArticleDOI
Risk, Return, and Equilibrium: Empirical Tests
Eugene F. Fama,James D. MacBeth +1 more
TL;DR: In this article, the relationship between average return and risk for New York Stock Exchange common stocks was tested using a two-parameter portfolio model and models of market equilibrium derived from the two parameter portfolio model.
Journal ArticleDOI
Law and Finance
TL;DR: In this article, the authors examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common-law countries generally have the strongest, and French civil law countries the weakest, legal protections of investors, with German- and Scandinavian-civil law countries located in the middle.
Journal ArticleDOI
Investor Protection and Corporate Governance
TL;DR: In this article, the authors argue that the legal approach is a more fruitful way to understand corporate governance and its reform than the conventional distinction between bank-centered and market-centered financial systems, and discuss the possible origins of these differences, summarize their consequences, and assess potential strategies of corporate governance reform.