This study investigates whether board reforms affect firms’ capital and labor investment efficiency. Based on difference-in-differences analyses, we show that board reforms improve capital investment efficiency. Importantly, after controlling for capital investment inefficiency, board reforms...

We examine the association between managerial overconfidence and internal controls. We hypothesize and find that firms with overconfident managers are more likely to maintain ineffective internal controls. Moreover, we find no evidence that these managers are more able to mitigate the known...

Building upon two competing hypotheses, the 'efficient investment' hypothesis and the 'internal capital markets' hypothesis, we set out in this study to examine the role of organizational form, in terms of 'focus' versus 'diversification', in explaining the long-run stock and operating...

This paper examines whether earnings restatements announced by one firm affect the disclosure policy of non-restating peer firms. Prior research suggested that restatements contain news about the future prospects and/or financial reporting quality of the restating firms' peer firms. This news...

We first investigate the relationship among a company's information transparency, idiosyncratic risk, and return of its convertible bonds. The effects of a company's idiosyncratic risk on its equity's value volatility and its credit risk are also examined. The findings indicate that when a...