We examine the effect of agency cost on the relation between top executives' overconfidence and investment-cash flow sensitivity using the data from Chinese listed companies. We find that on average top executives' overconfidence leads to increased investment-cash flow sensitivity. However, this...

Executive dismissal following low reporting quality events is well documented. However, prior research examines public signals of low reporting quality (e.g., restatements), which also have implications for the board’s own reputation due to the public nature of the signal. To investigate the...

Combining the company’s risk of financial fraud predicted by the machine learning method and unique Chinese data of board voting, this study investigates whether independent directors can identify the company’s risk of financial fraud. We find that independent directors are more likely to...