This paper investigates how corporate governance plays a role in long-run tax management and contributes to the existing literature in several ways. First, we add insight into the horizon problems related to executive and director compensation and show that incentive compensation provides...

Using an international sample of firms, this paper examines the relationship between carbon risk and future stock price crash risk. We find that carbon risk is positively associated with future stock price crash risk by increasing information asymmetry between the firm and investors. However, we...

We investigate the effect of say-on-pay (SOP) proposals on changes in executive and director compensation. Relative to non-SOP firms, SOP firms' total compensation to CEOs does not significantly change after the proposal. Although the total compensation does not change, the mix of compensation...

Toxic mortgage related assets in bank portfolios have tested the pervasive free market wisdom that markets can effectively discipline the risk taking behavior of financial firms. In the buildup to the current crises, banks over-leveraged themselves by investing in risky mortgage securities. In...

Given the increasing use of equity-incentive compensation in Europe, we examine the effects of executive compensation and investor protection on payout policy. We find a negative (positive) relationship between equity-incentive compensation and dividends (repurchases). In countries with weak...