Design of contracts that define firm, and their accounting systems depend on the conditions in the firm’s factor and product markets. We examine the fundamental difficulty of defining and developing "uniform" accounting for diverse economic environments across countries and compare the differences in conditions prevailing in some key markets in Japan and the United States. There are important d...

Distressed firms are vulnerable to ineffi cient panic-based runs of their workers, suppliers, and customers. A policymaker may try to prevent such a run by pledging to protect the interests of these stakeholders should a firm cease to do business. However, this promise also enables the firm to demand better terms of trade from its stakeholders, which blunts the policy’s effectiveness. We show h...

The latest round of share reform in China, which began in 2005, sets two related processes in motion: it increases the tradable share proportion and signals the start of a decline in the government-owned share proportion. This paper considers the effect these processes might have on firm performance in the future by analysing the impact the above share proportions had on firm performance immedi...

We document, describe and interpret changes in New Zealand corporate board characteristics between 1995 and 2010, a period centred around the 2003 introduction of the NZX Corporate Governance Best Practice Code. Unsurprisingly, the representation of non-executive, independent and female directors on NZ boards rose during the period, as did real chair and director fees and the importance of boar...

A gazdasagi valsaghelyzetekben gyakran drasztikusan visszaeső hitelkinalat jelentősen ronthatja a vallalatok hitelhez jutasi lehetősegeit, igy kilabalasi eselyeiket, realgazdasagi teljesitmenyuket is. Mennyiben enyhithetik e problemat tamogatott hitelek? Tanulmanyunkban ezt vizsgaljuk meg koronavirus-jarvany miatt Magyarorszagon bevezetett jegybanki es allami hitelprogramok foglalkoztatasi hata...

ABSTRACT We examine how investment professionals assess the usefulness of financial accounting information depending on their acquisition objectives and preparers' earnings management incentives. conduct a survey experiment based face-to-face interviews with document two main results. First, we find that, compared assigned firm valuation objective, those managerial performance evaluation object...

This paper investigates the relationship between an integrated corporate governance (CG) index and financial performance using a sample of 169 South African (SA) listed corporations between 2002 and 2007. We find a statistically significant and positive association between a broad set of good CG practices and financial performance. In a series of sensitivity analyses, we find that our results a...

We test the agency theory of corporate political activity by examining the association between the legality of independent expenditures and antitakeover lawmaking in theUSstates. Exploiting changes in state law regarding the use of corporate independent expenditures in the pre-Citizens United era, we estimate that a state is more likely to pass antitakeover statutes that entrench management whe...

We use China as a laboratory to test the effect of government quality on cash holdings. We build on, and extend, the existing literature on government expropriation and its interaction with firm-level agency problems by proposing a financial constraint mitigation argument. We find that firms hold less cash when local government quality is high, which is not consistent with the state expropriati...