Investigating discretion in executive contracting: extracting private information from valuation allowance decisions

Drake, Katharine D.; Engel, Ellen; Martin, Melissa

doi:10.1007/s11142-021-09648-y

Cited by 2 publications

(1 citation statement)

References 36 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Out of these, firm-year observations with missing data pertaining to the variables required for the present study were excluded (Arora and Bodhanwala, 2018), leading to 853 as the valid number of observations [2]. Finally, while performing regression analysis, the fixed effects model drops 607 observations because some of the sample firms (127 companies) do not have any CTURN event during the entire study period (Lafuente and Garcı ´a-Cestona, 2021;Drake et al, 2022). This resulted in an unbalanced data set of 246 firm-year observations (60 companies).…”

Section: Sample Selection and Data Sourcesmentioning

confidence: 99%

Board characteristics and CEO turnover–performance relationship: evidence from India

Jatana

2022

View full text Add to dashboard Cite

Purpose This paper aims to investigate the impact of board characteristics on CEO turnover performance relationship (TPR) in Indian listed firms. Design/methodology/approach A subset of the Standard and Poor’s Bombay Stock Exchange 500 (S&P BSE 500) Index companies was analyzed over the period 2015–2019 using the logistic (fixed-effects) regression model. Findings It was found that a weak relationship exists between CEO turnover and firm performance. With respect to board characteristics, board size was found to have a significant role in strengthening the TPR. However, other characteristics, such as board independence, multiple directors, board meetings and board gender diversity, played no role in influencing the TPR. Research limitations/implications First, the study period is limited to five years, during which several sample firms did not face any CEO turnover event leading to small sample size. Second, this study considers only the board’s gender diversity, whereas other types of diversity are omitted. Third, this study does not differentiate between insider and professional CEOs. Practical implications The findings suggest that regulators should focus on the effective enforcement of laws to strengthen the TPR and improve the monitoring role of boards, particularly in emerging economies like India, which face type II agency problems in addition to traditional principal–agent conflict. The results also offer implications for corporations, investors and academic researchers, highlighting areas that need considerable attention pertaining to corporate governance. Originality/value This study discerns the impact of several board-related characteristics on the TPR, particularly after the introduction of the new Companies Act 2013 in the emerging economy of India, where it has not been explored extensively.

show abstract

Section: Sample Selection and Data Sourcesmentioning

confidence: 99%

Board characteristics and CEO turnover–performance relationship: evidence from India

Jatana

2022

View full text Add to dashboard Cite

show abstract

How Do Hedge Fund Activists Use and Affect Tax Reporting? Evidence from the Valuation Allowance for Deferred Tax Assets

Cowx,

Glenn,

Kielty

et al. 2024

Preprint

View full text Add to dashboard Cite

Investigating discretion in executive contracting: extracting private information from valuation allowance decisions

Cited by 2 publications

References 36 publications

Board characteristics and CEO turnover–performance relationship: evidence from India

Board characteristics and CEO turnover–performance relationship: evidence from India

How Do Hedge Fund Activists Use and Affect Tax Reporting? Evidence from the Valuation Allowance for Deferred Tax Assets

Contact Info

Product

Resources

About