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Directors׳ and officers׳ liability insurance and the cost of equity
16 references·16 citing·31 second hopsampled
Directors׳ and officers׳ liability insurance and the cost of equity (2015)Directors׳ and officers׳ liability insura…Opaque financial reports, R2, and crash risk☆ (2009)Opaque financial reports, R2,…The law and economics of self-dealing (2008)The law and economics of self…What Works in Securities Laws? (2006)What Works in Securities Laws?Performance matched discretionary accrual measures (2005)Performance matched discretio…Managerial incentives and risk-taking☆ (2005)Managerial incentives and ris…Illiquidity and stock returns: cross-section and time-series effects (2002)Illiquidity and stock returns…Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature (2001)Information asymmetry, corpor…Corporate Ownership Around the World (1999)Corporate Ownership Around th…Disclosure level and the cost of equity capital. (1997)Disclosure level and the cost…A Survey of Corporate Governance (1997)A Survey of Corporate Governa…Disclosure, Liquidity, and the Cost of Capital (1991)Disclosure, Liquidity, and th…A Simple Model of Capital Market Equilibrium with Incomplete Information (1987)A Simple Model of Capital Mar…The Determinants of Firms' Hedging Policies (1985)The Determinants of Firms' He…Risk Reduction as a Managerial Motive for Conglomerate Mergers (1981)Risk Reduction as a Manageria…Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)Theory of the firm: Manageria…Risk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…Is institutional common ownership commonly priced? Insights from the cost of equity capital (2023)Is institutional common owner…Does directors' and officers' liability insurance improve corporate ESG performance? Evidence from China (2023)Does directors' and officers'…Directors' and officers' liability insurance, environmental regulation and firms' envi ronmental responsibility (2023)Directors' and officers' liab…Does directors' and officers' liability insurance induce empire building? Evidence from corporate labor investment (2022)Does directors' and officers'…Directors’ and officers’ liability insurance: Evidence from independent directors’ voting (2022)Directors’ and officers’ liab…Measuring Accounting Fraud and Irregularities Using Public and Private Enforcement (2021)Measuring Accounting Fraud an…Is tax aggressiveness associated with tax litigation risk? Evidence from D&O Insurance (2021)Is tax aggressiveness associa…Bank capital and the cost of equity (2021)Bank capital and the cost of …What's good for you is good for me: The effect of CEO inside debt on the cost of equity (2020)What's good for you is good f…Political connections and directors' and officers' liability insurance – Evidence from China (2019)Political connections and dir…Is skin in the game a game changer? Evidence from mandatory changes of D&O insurance policies (2019)Is skin in the game a game ch…Directors’ and officers’ liability insurance and firm innovation (2019)Directors’ and officers’ liab…Shareholder Protection and the Cost of Capital (2018)Shareholder Protection and th…Financial development, corporate governance and cost of equity capital (2018)Financial development, corpor…D IRECTORS’ AND O FFICERS’ L IABILITY I NSURANCE AND F IRM V ALUE (2016)D IRECTORS’ AND O FFICERS’ L …Directors' and Officers' Liability Insurance, Independent Director Behavior and Governance Effect (2015)Directors' and Officers' Liab…Coefficient Alpha and the Internal Structure of Tests (1951)The Cross-Section of Expected Stock Returns (1992)The economic implications of corporate financial reporting (2005)Voluntary Nonfinancial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting (2010)CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Framing of Decisions and the Psychology of Choice (1981)The Limits of Arbitrage (1995)The Cross‐Section of Volatility and Expected Returns (2006)The Behavior of Stock-Market Prices (1965)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)The Nature of the Firm (1937)The Pricing of Options and Corporate Liabilities (1973)Editor's Choice Digesting Anomalies: An Investment ApproachCommon risk factors in the returns on stocks and bonds (1993)On Persistence in Mutual Fund Performance (1997)Liquidity Risk and Expected Stock Returns (2003)Asset pricing with liquidity risk (2005)Separation of Ownership and Control (1983)Legal Determinants of External Finance (1997)Investor protection and corporate governance (2000)Law and Finance (1998)The separation of ownership and control in East Asian Corporations (2000)Earnings management and investor protection: an international comparison (2003)Experimental and Quasi-Experimental Designs for Research (1963)Earnings Management During Import Relief Investigations (1991)Earnings Management through Real Activities Manipulation (2003)Understanding earnings quality: A review of the proxies, their determinants and their consequences (2010)A review of archival auditing research (2014)The Market for "Lemons": Quality Uncertainty and the Market Mechanism (1970)Corporate financing and investment decisions when firms have information that investors do not have (1984)Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis (2007)
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References

  • 1976Theory of the firm: Managerial behavior, agency costs and ownership structure71,441 cited
  • 1997A Survey of Corporate Governance16,237 cited
  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 1999Corporate Ownership Around the World10,565 cited
  • 2002Illiquidity and stock returns: cross-section and time-series effects10,008 cited
  • 2001Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature7,391 cited
  • 2005Performance matched discretionary accrual measures6,963 cited
  • 1987A Simple Model of Capital Market Equilibrium with Incomplete Information5,808 cited
  • 1991Disclosure, Liquidity, and the Cost of Capital3,828 cited
  • 1997Disclosure level and the cost of equity capital.3,577 cited
  • 2008The law and economics of self-dealing3,514 cited
  • 1985The Determinants of Firms' Hedging Policies3,270 cited
  • 2005Managerial incentives and risk-taking☆2,924 cited
  • 2009Opaque financial reports, R2, and crash risk☆2,796 cited
  • 2006What Works in Securities Laws?2,787 cited
  • 1981

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Risk Reduction as a Managerial Motive for Conglomerate Mergers
2,775 cited

Cited by

  • 2019Political connections and directors' and officers' liability insurance – Evidence from China130 cited
  • 2018Shareholder Protection and the Cost of Capital94 cited
  • 2019Directors’ and officers’ liability insurance and firm innovation77 cited
  • 2015Directors' and Officers' Liability Insurance, Independent Director Behavior and Governance Effect69 cited
  • 2018Financial development, corporate governance and cost of equity capital63 cited
  • 2021Measuring Accounting Fraud and Irregularities Using Public and Private Enforcement59 cited
  • 2016D IRECTORS’ AND O FFICERS’ L IABILITY I NSURANCE AND F IRM V ALUE59 cited
  • 2022Directors’ and officers’ liability insurance: Evidence from independent directors’ voting56 cited
  • 2020What's good for you is good for me: The effect of CEO inside debt on the cost of equity54 cited
  • 2021Is tax aggressiveness associated with tax litigation risk? Evidence from D&O Insurance42 cited
  • 2023Directors' and officers' liability insurance, environmental regulation and firms' envi ronmental responsibility39 cited
  • 2023Does directors' and officers' liability insurance improve corporate ESG performance? Evidence from China36 cited
  • 2019Is skin in the game a game changer? Evidence from mandatory changes of D&O insurance policies34 cited
  • 2023Is institutional common ownership commonly priced? Insights from the cost of equity capital33 cited
  • 2022Does directors' and officers' liability insurance induce empire building? Evidence from corporate labor investment33 cited
  • 2021Bank capital and the cost of equity32 cited