Journal ArticleDOI
R2 around the world: New theory and new tests
Li Jin,Stewart C. Myers +1 more
Reads0
Chats0
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
Citations
More filters
Journal ArticleDOI
Foreign institutional investors and stock return comovement
Li Jiang,Jeong-Bon Kim,Lei Pang +2 more
TL;DR: In this paper, the authors investigate whether foreign institutional investors facilitate firm-specific information flow in the global market and find that foreign institutional ownership is negatively associated with excess stock return comovement.
Journal ArticleDOI
CEO centrality and stock price crash risk
TL;DR: The authors examined the effect of the CEO's network centrality on a firm's future stock price crash risk with a longitudinal dataset of S&P 1500 companies from 1999 to 2019 and found that firms with more central CEOs are less likely to show bad news hoarding behavior, leading to lower future stock prices crash risk.
Journal ArticleDOI
Auditor gender and stock price crash risk: evidence from China
TL;DR: In this paper, the authors attributed stock price crash risk to agency problems and information asymmetry, and suggested that auditors generally play a more important governance function in countries with weak legal institutions.
Journal ArticleDOI
XBRL Adoption and Capital Market Information Efficiency
Lei Ruan,Heng Liu,Sang-Bing Tsai +2 more
Journal ArticleDOI
Pledgee competition, strategic disclosure, and future crash risk
Xiaoxi Li,Jing Liu,Kemin Wang +2 more
TL;DR: In this article, the authors investigate whether competition affects the disclosure choice of firms whose controlling shareholders pledge their shares and find that competition pressure induces pledgees to lower their monitoring incentives to remain competitive in the marketplace, thus leading to bad news hoarding behavior.
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.
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.