Abstract Based on textual analysis and a comparison of cybersecurity risk disclosures firms that were hacked to others not, we propose novel firm-level measure for all U.S.-listed firms. We then examine whether is priced in the cross-section stock returns. Portfolios with high exposure outperform other firms, average, by up 8.3$\%$ per year. Yet, high-exposure perform poorly periods risk. Reassuringly, higher information-technology industries, correlates characteristics linked hit...

Abstract Purpose – This paper aims to extend the empirical literature on determinants of agency costs by using a large sample UK listed firms. Design/methodology/approach The investigates impact several corporate governance mechanisms two alternative proxies for costs, namely ratio total sales assets (asset turnover) and selling, general administrative expenses (SG&A). analysis depends cross‐sectional regression approach. Findings results reveal that capital structure characteristics firms,...

Abstract This paper empirically investigates the relationship between managerial entrenchment and agency costs for a large sample of UK firms over period 1999–2005. To measure entrenchment, we use detailed information on ownership board structures compensation. We develop index, which captures extent to managers have ability incentives expropriate wealth from shareholders. Our findings, are based dynamic panel data analysis, show that there is strong negative our inverse proxy costs, namely...

Abstract Research Question/Issue This research examines the relationship between board processes and corporate financial risk. Using a unique questionnaire survey about behavior, several measures related to are developed used explain certain aspects of risk during recent crisis. Findings/Insights In sample 141 companies with complete data collected from company chairs on both structure process, process is found be an important determinant crisis 2008–2009. particular, lower where...

Using hand-collected data on violations of environmental regulations by heavily polluting firms in China, we examine the relationship between political connections and probability punishment for breach such regulations. To this end, exploit a regulatory reform, enactment Rule 18, key component China's anti-corruption campaign, which required politically connected independent directors to resign from their positions. difference-in-differences specifications, find that resigned due 18...

Abstract This paper investigates the effect of managerial incentives and corporate governance on capital structure using a large sample UK firms during period 1999–2004. The analysis revolves around view that are important in determining firm's leverage. However, we argue exact impact these leverage is likely to be determined by firm‐specific characteristics. To conduct our investigation, construct simple measure detailed ownership information. We present evidence significant non‐monotonic...

This study investigates the relationship between internal corporate governance mechanisms and performance for a large sample of UK firms. The aim is to extend existing literature on firm by empirically investigating role debt-maturity structure firms managerial compensation in affecting performance. Also, attempts provide new insights subject considering potential interaction effects ownership other available results support existence non-linear impact both company Debt-maturity also found...

This study constructs a novel data set of bankruptcy filings for large sample non-U.S. firms in 14 developed markets and sheds new light on the cross-sectional relation between default risk stock returns. Using reduced-form approach Campbell et al. (2008) to estimate probabilities, we offer conclusive evidence supporting existence significant positive premium international markets. finding is robust different portfolio weighting schemes, filters, risk-adjusting approaches, holding period...

In this study we propose a new price impact ratio as an alternative to the widely used Amihud’s (2002) Return-to-Volume (RtoV). This measure, which is deemed Return-to-Turnover (RtoTR), essentially modifies RtoV by substituting trading volume in its denominator with turnover for each security. We demonstrate that has number of appealing features. Using daily data from all stocks listed on London Stock Exchange over period 1991-2008, provide overwhelming evidence ratio, while being...

This study examines the impact of financial flexibility on investment and performance East Asian firms over period 1994-2009. We employ a sample 1,068 place particular emphasis periods crisis (1997-1998) recent credit (2007-2009). The results show that can attain flexibility, primarily through conservative leverage policies less commonly by holding large cash balances. Financial appears to be an important determinant performance, mainly during 1997-1998 crisis. In particular, are financially...