This study examines the rather controversial practice of managerial hedging, which allows CEOs to delink their compensation from stock price performance. We presume that boards are aware of these practices and adjust the weights placed on accounting-based and stock-based performance measures in...

Prior studies suggest that directors' and officers' (D&O) insurance induces moral hazard and reduces incentives on behalf of stockholders. As a result, we argue that purchasing D&O insurance exhibits lower investment efficiency. Using data from Taiwan between 2008 and 2010, which is mandatorily...

Purpose – This study aims to empirically investigate whether the adoption of fair-value-accounting decreases the relevance of banks' capital adequacy ratios (CARs) in explaining insolvency risks. Additionally, how the disclosure quality affects the superiority of fair-value-based CARs over...