We empirically compare the reliability of the dividend (DIV) model, the residual income valuation (CT, GLS) model, and the abnormal earnings growth (OJ) model. We find that valuation estimates from the OJ model are generally more reliable than those from the other three models, because the...

Research Question/Issue: La Porta et al. (2000) examine the impact of corporate governance on dividend policies by testing two hypotheses, the outcome hypothesis and the substitution hypothesis. The former argues that firms with better governance may pay higher dividends to mitigate agency...

We examine the impact of information asymmetry on a firm's capital structure decisions with a unique information rating scheme that draws from 114 measures over five dimensions of information disclosures on each firm from 2006 to 2012. We found that a firm with high (low) information rating is...

This paper investigates the role of corporate social responsibility (CSR) performance in forecasting companys' stock prices and future returns. The forecasting analysis identifies a negative association between CSR performance and proxies of price delay. The negative CSR–delay association is...

In this study, we explore the effect of managerial ability toward corporate social responsibility (CSR) on enterprise default risk. We observe a negative correlation between CSR and enterprise default risk. Furthermore, we introduce managerial ability and analyze its effects on the default risk...

Traditional tradeoff theories puzzlingly predict that firms use high leverage, issue debt carrying a high duration and low yield spread, and have optimal debt policies highly affected by managerial risk-shifting behavior. We offer an ambiguity-based explanation for these corporate debt puzzles....

The relationship between societal trust and stock price delay is examined across 33 countries for the period from 1985 to 2021. The results showed that societal trust positively impacts investors' perception of information credibility, resulting in a shortened stock price delay. This effect is...

In the past decade, cyber insurance has raised much interest in the insurance industry, and cyber risk has evolved from a type of pure operational risk to both operational and liability risk for insurers. However, the modeling of cyber risk is still in its infancy. Compared with other insurance...