Before 1941, U.S. regulatory bodies were unrestricted. By 1946, several states and the federal government had imposed restrictions. It further took 40 years for every state to enact an Administrative Procedures Act (APA), a law that dictates how regulatory agencies promulgate regulations....

This paper documents an association between firms’ cash holdings and CEO’s pay performance sensitivity. Controlling whether CEOs are both president, firm size, leverage, auditor specialization and the ratio of independent board, we find that firms with more cash holdings are more likely to...