Governance literature finds that the independent directors from the lending banks (CBDs) bring both financial expertise and conflict of interest between shareholders and debtholder. We examine how the presence of CBDs affects the implicit incentive of CEO turnover. Using BoardEx and DealScan...

Does an improvement in stock market liquidity cause the board of directors to become more short-term oriented? Improved liquidity may lead to enhanced market efficiency with more trading by informed blockholders (Maug, 1998). Hence, stock price would better reflect the fundamental values of the...

With hand-collected data of 2,061 CEO departures and 2,553 CFO departures over the period from 1979 to 2006, I find that Sarbanes-Oxley Act (SOX) brought a higher standard of management dismissal for the firms with more entrenched management. I find that the board of directors became less...