This paper analyzes why corporate governance matters for stock returns if the stock market prices the underlying managerial agency problem correctly. Our theory assumes that strict corporate governance prevents managers from diverting cash flows, but reduces incentives for managerial effort. In...

This study shows that state ownership affects the impact of environmental, social, and governance (ESG) activities on firm value, using data covering ESG performance of the entire cross-section of China’s stock markets. Taking the COVID-19 market crash as an exogenous shock, we find a positive...

This paper proposes a theoretical model that incorporates corporate governance into the basic CAPM, where corporate governance affects the disutility of managerial effort and the possibility of managers to divert company resources. It shows that corporate governance affects firms’ stock...

This paper proposes a theoretical model that incorporates corporate governance into the basic CAPM, where corporate governance affects the disutility of managerial effort and the possibility of managers to divert company resources. It shows that corporate governance affects firms’ stock...

Corporate ownership networks have a long tradition in developed economies, they are however new to transitional economies like Slovenia, where these networks developed only recently as a result of institutional changes. The resulting network is not natural and is therefore changing rapidly....

When attempting to measure gun ownership in the United States, the problem of missing administrative data arises, making it necessary to find a valid proxy. Several such proxies are employed in economic studies, one of which is the fraction of "suicides by firearm" of "all suicides" (FSS). My...

The determinants of transitions between different states of financial distress are analyzed using two versions of Markov chain models: a multinomial logit model without random effects and a multinomial logit model capturing such unobservable factors. The empirical analysis is based on a panel...

The determinants of transitions between different states of financial distress are analyzed using two versions of Markov chain models: a multinomial logit model without random effects and a multinomial logit model capturing such unobservable factors. The empirical analysis is based on a panel...

This paper is the first to investigate both the technical and cost efficiency of more than 1,500 German general hospitals. More specifically, it deals with the question how hospital efficiency varies with ownership, patient structure, and other exogenous factors, which are neither inputs nor...

This paper investigates cost and profit efficiency of German hospitals. More specifically, it deals with the question how hospital efficiency varies with ownership, patient structure,and other exogenous factors, which are neither inputs nor outputs of the production process.We conduct a...