Empirical evidence on the causal effects of managerial ownership on firm performance has been elusive due to a lack of within-firm variation and credible empirical design. This paper identifies this causal effects exploiting the 2003 Tax Cut as a quasi-natural experiment, which increased the net-of-tax effective managerial ownership. Consistent with predictions from agency theory, our differenc...

In this paper, I investigate the interaction between the duration of executive compensation and shareholder governance. I show that short-term compensation can elicit shareholder intervention and thus enhance firm value. The central mechanism is that the use of short-term incentives enables informed incumbent shareholders to commit to using their private information to intervene (voice) instead...

Much of our understanding of corporations builds on the idea that managers, when they are not closely monitored, will pursue goals that are not in shareholders’ interests. But what goals would managers pursue? This paper uses variation in corporate governance generated by state adoption of antitakeover laws to empirically map out managerial preferences. We use plant-level data and exploit a uni...

The worldwide concern with corporate governance concerns itself, inter alia, with the risks that an organisation faces; for many, IT is significant among those risks. This paper examines the audit approach, and others, to dealing with risks in IT-based systems. This paper summarises the findings of research in IT-related areas of risk and then draws together a charter for IT governance that mee...

Corporate governance has been in the recent years one of the most debated issues in conventional economic approaches. Agency theory combined with financial indicators has particularly contributed to the development of shareholder value as a key concept in companies’ governance both at a theoretical and empirical level. In this paper, we argue that an evolutionary perspective can be developed on...

This paper explores the role of corporate governance in the Asian crisis countries: Korea, Indonesia, Malaysia and Thailand. It argues that the focus in an analysis of corporate governance should be on the provision of external equity finance -the position of outside minority shareholders. The proportion of equity finance in the capital structure of firms is highly correlated with the status of...