We systematically analyze how variations in board independence and ownership concentration and type affect corporate social performance (CSP). Drawing from the agency and stakeholder perspectives, we argue that recognizing differences in the distribution of costs and benefits to shareholders and...

The relationship between policyholders and an Islamic insurance (takaful) operator is in essence a principal-agent relationship. This paper analyzes the power of incentives offered to takaful operators in mitigating problems associated with such a relationship. These incentives include wakalah,...

What is the impact of long-term executive compensation, particularly large pension payouts, on the firm's current dividend policy? We argue that managers with high pension holdings are less likely to adopt a high dividend policy that can risk their future pension payouts. Using a hand-collected...

It is well known that firms with low price to earnings ratios (value firms) earn higher stock returns in the long term than high price to earnings firms (growth firms). This study investigates how insider ownership affects this relation. We show that when insider ownership is high, returns...

We find that the negative relation between bidder announcement returns and bidder cash reserve is present only when a bidder has a low asset tangibility. We further find that cash-rich companies acquire less, especially in the past two decades. After acquisitions, cash-rich bidders spend more on...

In a novel approach using agency theory, we conceptualize export pricing as price manipulations an exporter initiates to cope with the distributor-level, internal competition with the other product lines the distributor carries. We argue that suppliers can influence foreign resellers’...

This study investigates independent non-executive directors’ remuneration from an agency theory perspective, taking into account both optimal contracting and managerial power perspectives. Using a sample of 1733 independent non-executive directors’ year observations in Italian and UK...

Relying on an alternative theoretical framework (i.e. institutional theory), rather than the dominant agency theory, this paper examines the connections between corporate governance mechanisms and good practices, as informed by an empirical and contextual analysis. On the basis of research...

The series of corporate accounting scandals drew attention to the stewardship function of accounting. This exposition deals with the characteristics of accounting from perspective of institutional economic theory. I analyze relationship between owner and manager by the principal-agent model....

The study of the history of theoretical opinions enables better to estimate the direction of future research. Objective of the article is to show main developmental lines in several aspect of financial theory concentrated on material investments and to say thesis about further development of...