Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Business
Board Interlocks And The Diffusion Of Disclosure Policy, Ye Cai, Dan S. Dhaliwal, Yongtae Kim, Carrie Pan
Board Interlocks And The Diffusion Of Disclosure Policy, Ye Cai, Dan S. Dhaliwal, Yongtae Kim, Carrie Pan
Accounting
We examine whether board connections through shared directors influence firm disclosure policies. To overcome endogeneity challenges, we focus on an event that represents a significant change in firm disclosure policy: the cessation of quarterly earnings guidance. Our research design allows us to exploit the timing of director interlocks and therefore differentiate the director interlock effect on disclosure policy contagion from alternative explanations, such as endogenous director-firm matching or strategic board stacking. We find that firms are more likely to stop providing quarterly earnings guidance if they share directors with previous guidance stoppers. We also find that director-specific experience from prior …
Corporate Social Responsibility And Stock Price Crash Risk, Yongtae Kim, Haidan Li, Siqi Li
Corporate Social Responsibility And Stock Price Crash Risk, Yongtae Kim, Haidan Li, Siqi Li
Accounting
This study investigates whether corporate social responsibility (CSR) mitigates or contributes to stock price crash risk. Crash risk, defined as the conditional skewness of return distribution, captures asymmetry in risk and is important for investment decisions and risk management. If socially responsible firms commit to a high standard of transparency and engage in less bad news hoarding, they would have lower crash risk. However, if managers engage in CSR to cover up bad news and divert shareholder scrutiny, CSR would be associated with higher crash risk. Our findings support the mitigating effect of CSR on crash risk. We find that …