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
Citations
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Enterprise Digital Transformation and Stock Price Crash Risk: Evidences from China
TL;DR: Wang et al. as discussed by the authors measured the degree/level of enterprise digital transformation (EDT) of Chinese A-share publicly owned enterprises through document study and crawler technology, examining the influence and mechanism of digital transformation on companies' stock price crash risk.
Book ChapterDOI
Divergent opinion, trading information, and stock price co-movements
TL;DR: In this paper, the authors extract three information components from the turnover rate: market information, firm-specific information, and investors' opinion divergence, and find that market information strengthens stock price co-movement, whereas firm specific information weakens it.
Journal ArticleDOI
Insider stock pledging and stock price informativeness: Evidence from India
TL;DR: In this article , the authors examined the impact of insider stock pledging activities on stock price informativeness using a sample of 1835 Indian firms and found that insider stock pledges increased the informational efficiency of stock prices.
Journal ArticleDOI
Does foreign institutional ownership matter for stock price synchronicity? International evidence
TL;DR: In this paper , the authors investigate the relation between foreign institutional ownership and stock price synchronicity, and whether this relation varies across country-level institutional and information infrastructures.
Journal ArticleDOI
How does Financial Reporting Quality Relate to Stock Price Crash Risk? Evidence from Indonesian Listed Companies
TL;DR: In this paper, the influence of financial statement transparency, institutional investor stability, audit tenure, and conservatism on stock price crash risk was examined, and the results showed that institutional investors tend to overlook the issues of financial report transparency while making equity investment decisions.
References
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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.