External Corporate Governance and Misreporting
48 Pages Posted: 26 Jul 2005 Last revised: 24 Jun 2016
Date Written: November 6, 2013
Abstract
This study investigates associations between accounting restatements and external corporate governance considered as statutory and corporate charter provisions that limit shareholder participation in the governance process. The analysis indicates that characteristics of strong external governance (fewer restrictions on shareholder participation) are associated with relatively low probabilities of accounting restatement. These results are robust both when we control for internal governance characteristics frequently advanced by governance experts and imposed by regulators, and when we consider alternative external governance measures.
Keywords: Corporate Governance, Strong board, External Governance, Accounting Restatement
JEL Classification: G34, M41, M43
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Corporate Governance and Equity Prices
By Paul A. Gompers, Joy L. Ishii, ...
-
What Matters in Corporate Governance?
By Lucian A. Bebchuk, Alma Cohen, ...
-
Governance Mechanisms and Equity Prices
By Martijn Cremers and Vinay B. Nair
-
Did New Regulations Target the Relevant Corporate Governance Attributes?
By Reena Aggarwal and Rohan Williamson
-
Governance Mechanisms and Bond Prices
By Martijn Cremers, Vinay B. Nair, ...
-
Corporate Governance and Merger Activity in the U.S.: Making Sense of the 1980s and 1990s
-
Corporate Governance and Merger Activity in the U.S.: Making Sense of the 1980s and 1990s
-
The Costs of Entrenched Boards
By Lucian A. Bebchuk and Alma Cohen