Corporate governance is a complex issue, the focal point of which is the exercise of power. The power has limits, however, imposed by both legislation and contracts. Also, even if the overarching power belongs to the shareholders, residual power cannot be exercised to the detriment of the rights of the other stakeholders. Because the governance system and resulting structures have a major influ...

In this paper, we examine the universality of “good” corporate governance practices as exemplified by the Anglo-American governance paradigm. Using a new database from Governance Metrics International featuring highly granular measures of corporate governance practices across a large number of countries for the period 2006-2011, we first find that the national cultural dimension of individualis...

This paper investigates the variation in contagion effect of corporate scandals on peers firms with different corporate governance quality. We find that better corporate governance reduces investors’ uncertainty about a firm’s fundamental value and alleviates the contagion effect of scandals. Specifically, the empirical results show that external governance, ownership structure and external aud...

The aim of this paper is to discuss the effect of corporate governance mechanisms on controlling CEOs’ emotions and some behavioral biases. Departing from a sample of 40 public traded Tunisian firms, we test the impact of the board of directors on managing CEO’s irrationalities. Our results highlight strong evidence on the role of the board characteristics, especially the board independence, a ...

The fallout of the Enron debacle spurred legislative and regulatory activity aimed at strengthening corporate governance and preventing another corporate implosion. Confronting shattered investor confidence, Congress responded to these corporate governance fiascos by enacting the now infamous Sarbanes-Oxley Act of 2002. The Securities and Exchange Commission (SEC), meanwhile, called on the self...

This article has two related tasks. First, we review the articles published in this Special Issue on Corporate Control, Mergers, and Acquisitions. These articles provide new evidence on several aspects of corporate control and governance including the value and performance effects of various ownership groups, the impact of internal governance structures, the effects of regulatory changes on spe...

Recent research studying the link between law and finance has concentrated on country-level investor protection measures and focused on differences in legal systems across countries and legal families. We use recent data on firm-level corporate governance rankings across 14 emerging markets and find that there is wide variation in firm-level governance across countries in our sample and that th...

A model of corporate governance must explain (i) why governance matters; (ii) variation in governance across firms (i.e., be responsive to the Demsetz and Lehn, 1985, critique); and (iii) the positive correlations found empirically between quality of corporate governance and corporate performance. The model presented here satisfies these three criteria. It assumes exogenous variation in firm po...

This study aims to investigate the impact of information asymmetry, accounting conservatism, and firm size on earning management with moderation good corporate governance. The population in this is companies primary consumer goods industry sector listed IDX 2018-2021, samples were selected using purposive sampling techniques obtained from as many 18 that meet research criteria. total data becom...