This paper explores the influence of geographic, social and cultural proximity of independent directors on reducing Chinese listed firms' fraudulent and noncompliant practices. Our choice of using local versus non-local independent directors as a focus of study is motivated by the relevance of...

This paper explores the influence of geographic, social and cultural proximity of independent directors on reducing Chinese listed firms' fraudulent and noncompliant practices. Our choice of using local versus non-local independent directors as a focus of study is motivated by the relevance of...

The global financial crisis in 2008 increased the number of business failures in the U.S. as well as in China. The Chinese economy has also been affected by the recent global financial crisis given the fact that the Chinese economy depends heavily on international trade. Our study tries to find...

The SFAS 123R comment process generated over 6,500 comment letters, most of which were against the standard’s enactment. This outpouring of emotion indicates that many believe that disclosure versus recognition matters. Our paper provides evidence for the debate whether managers’ discretion,...

We rely on governance theory summarized in Adams, Hermalin, and Weisbach (2010) and Bushman (2009) which suggests that corporate governance characteristics may be endogenous. This differs from past research that links governance to fraud (i.e., Farber 2005) and assumes corporate governance is...

We investigate the effect of stock option backdating on the information risk of accused companies. This research provides evidence concerning the consequences that a change in this risk may have on equity values after discovery that companies participated in this questionable behavior. We...