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Author: Zhiyan Cao
Publisher:
ISBN:
Category :
Languages : en
Pages : 43
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Book Description
We examine the relationship between corporate governance and default risk for a sample of firms cited in the Securities and Exchange Commission's (SEC's) Accounting and Auditing Enforcement Releases (AAERs). Using hazard analysis of actual default incidence and OLS regressions of a continuous variable capturing a firm's “closeness to default,” we document changes in the relationships between various governance characteristics and default risk from the pre-AAER period to the post-AAER period. Specifically, smaller board size, greater board independence, greater gender diversity of the board, and lower concentration of institutional ownership are all shown to have a more favorable effect on lowering default risk in the post-AAER period relative to the pre-AAER period. Our comparative analysis of a group of firms with accounting restatements (but not cited in the AAERs) does not show similar changes in the relationships between the various corporate governance characteristics and default risk from the pre-restatement to the post-restatement period. This suggests that the regulatory sanctions experienced by AAER firms may have prompted creditor reevaluation of the firms' information environment and the perceived efficacy of various corporate governance mechanisms in mitigating default risk.
Author: Zhiyan Cao
Publisher:
ISBN:
Category :
Languages : en
Pages : 43
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Book Description
We examine the relationship between corporate governance and default risk for a sample of firms cited in the Securities and Exchange Commission's (SEC's) Accounting and Auditing Enforcement Releases (AAERs). Using hazard analysis of actual default incidence and OLS regressions of a continuous variable capturing a firm's “closeness to default,” we document changes in the relationships between various governance characteristics and default risk from the pre-AAER period to the post-AAER period. Specifically, smaller board size, greater board independence, greater gender diversity of the board, and lower concentration of institutional ownership are all shown to have a more favorable effect on lowering default risk in the post-AAER period relative to the pre-AAER period. Our comparative analysis of a group of firms with accounting restatements (but not cited in the AAERs) does not show similar changes in the relationships between the various corporate governance characteristics and default risk from the pre-restatement to the post-restatement period. This suggests that the regulatory sanctions experienced by AAER firms may have prompted creditor reevaluation of the firms' information environment and the perceived efficacy of various corporate governance mechanisms in mitigating default risk.
Author: Tamara Teplova
Publisher: Routledge
ISBN: 1000201783
Category : Business & Economics
Languages : en
Pages : 351
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Book Description
The bond market is a key securities market and emerging economies present exciting, new investment opportunities. This timely book provides insights into these emerging bond markets through empirical models and analytical databases, i.e. Bloomberg, Eikon Refinitiv and the Russian Cbonds. The book looks at the dynamics of the development of emerging bond markets, their competitiveness, features and patterns using macro and micro level data. It also takes into consideration various securities type i.e. government, corporate, sub-federal and municipal bonds, to identify respective challenges and risks. The book also analyses factors that may inhibit or stimulate a well-balanced financial market. It includes case studies of Asian, Latin American and Russian bond markets, as also as cross-country comparisons. It will be a useful reference for anyone who is interested to learn more of the bond market and the modelling techniques for critical data analysis.
Author: Diane E. Ambler
Publisher: Wolters Kluwer
ISBN: 0735558736
Category : Business & Economics
Languages : en
Pages : 1519
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Book Description
Only one resource provides practical guidance to help ensure compliance with all Sarbanes-Oxley rules and regulations. Introducing the new Sarbanes-Oxley Act: Planning and& Compliance - the first resource providing practical, step-by-step guidance to help you navigate the Sarbanes-Oxley maze and ensure compliance. Written by two well-respected authorities, this unique and invaluable compendium: Fully reflects the current body of SEC rules, regulations and interpretations, PCAOB rules and standards, and Sarbanes-Oxley related court decisions Covers a wide range of compliance-related issues and areas - from SEC disclosure rules and certification of financial documents, to the treatment of pension plans and loans to officers Includes regular updates to keep you current as the regulatory environment continues to expand and evolve Provides exhaustive details on the compliance responsibilities of corporate CEOs, CFOs, directors, audit committees and attorneys Most importantly, Sarbanes-Oxley Act: Planning and& Compliance provides a veritable andquot;blueprintandquot; for an effective corporate compliance program. For each area covered, you'll find a detailed summary of key subject matters to be addressed; step-by-step guidance on practical planning and implementation issues; recommended compliance procedures; and specific compliance actions to be taken by the company and its key officers. You'll also have access to best practices and policies designed to ensure good corporate governance, transparency and accurate financial reporting. Why settle for andquot;information and explanationandquot; when you can have step-by-step guidance and advice?
Author: George Benston
Publisher: Brookings Institution Press
ISBN: 9780815708919
Category : Business & Economics
Languages : en
Pages : 154
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Book Description
A Brookings Institution Press and American Enterprise Institute publication A few years ago, Americans held out their systems of corporate governance and financial disclosure as models to be emulated by the rest of the world. But in late 2001 U.S. policymakers and corporate leaders found themselves facing the largest corporate accounting scandals in American history. The spectacular collapses of Enron and Worldcom—as well as the discovery of accounting irregularities at other large U.S. companies—seemed to call into question the efficacy of the entire system of corporate governance in the United States. In response, Congress quickly enacted a comprehensive package of reform measures in what has come to be known as the Sarbanes-Oxley Act. The New York Stock Exchange and the NASDAQ followed by making fundamental changes to their listing requirements. The private sector acted as well. Accounting firms—watching in horror as one of their largest, Arthur Andersen, collapsed after a criminal conviction for document shredding—tightened their auditing procedures. Stock analysts and ratings agencies, hit hard by a series of disclosures about their failings, changed their practices as well. Will these reforms be enough? Are some counterproductive? Are other shortcomings in the disclosure system still in need of correction? These are among the questions that George Benston, Michael Bromwich, Robert E. Litan, and Alfred Wagenhofer address in Following the Money. While the authors agree that the U.S. system of corporate disclosure and governance is in need of change, they are concerned that policymakers may be overreacting in some areas and taking actions in others that may prove to be ineffective or even counterproductive. Using the Enron case as a point of departure, the authors argue that the major problem lies not in the accounting and auditing standards themselves, but in the system of enforcing those standards.
Author: Tzveta K. Vateva
Publisher:
ISBN:
Category : Corporate governance
Languages : en
Pages : 200
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Book Description
This dissertation investigates the relationship between corporate governance and default risk as proxied by credit default swap spreads and credit ratings. Motivated by the post-financial crisis interest of academia and regulators in the possible links between the quality of corporate governance and CDS market performance and the ambiguity of the previous research findings in the area, I study a sample of 495 U.S. publicly-traded firms with CDS contracts and a sample of 1670 U.S. firms with no CDS contracts over a time horizon spanning from January 2002 until December 2012. The analysis is founded in rejecting the conjectures that no relation exists between the Gompers et al. (2003) corporate governance index and default risk, between institutional ownership and default risk, and between managerial ownership and default risk. I find robust empirical evidence in support of a strong association between the number of institutional investors, the total ownership of the five largest institutional blockholders, and the ownership concentration index with both CDS spreads and Credit ratings in both samples. Increases in these institutional ownership variables are associated with higher firm default risk, indicated by higher CDS spreads and lower firm credit rankings. This strong positive association suggests that large institutional blockholders have the ability to influence the default risk of firms. Additionally, I find strong positive association between the change in shares held by managers and CDS spreads and Credit ratings, implying that imbalances in managerial trading are perceived as negative signals for the credit quality of firms. I also provide partial evidence to substantiate an inverse relationship the G-index with the credit ratings of firms without CDS contracts. After controlling for various firm-level and macroeconomic characteristics, results are robust to different subsamples and estimation methods. The evidence is sufficient to validate the interest of regulators and risk-management professionals into the relationship between ownership interests and default risk within a firm.
Author: T. Sheppey
Publisher: Springer
ISBN: 0230598021
Category : Business & Economics
Languages : en
Pages : 432
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Book Description
Since its inception, several lawsuits have been filed under the Sarbanes Oxley Act, some corporate executives are serving jail sentences and share prices of affected companies have dropped by millions. This book examines how compliance is achieved and maintained. It explores successful strategies and suggests effective measures for implementation.
Author: United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs
Publisher:
ISBN:
Category : Corporation law
Languages : en
Pages : 684
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Book Description
Author: Harold S. Bloomenthal
Publisher:
ISBN:
Category : Corporate governance
Languages : en
Pages : 400
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Book Description
"West's securities law library"--Page 4 of cover.
Author: Yajing Zhang
Publisher:
ISBN:
Category :
Languages : en
Pages : 39
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Book Description
This paper investigates the influence of corporate governance structures on the credit risks of Canadian firms from the perspective of bondholders after the 2007-2008 financial crisis. Default probabilities calculated from Black-Scholes/ Merton Distance to Default type models are used to measure firms credit risks. Based on these measures, Canadian financial firms actually show higher risk than non-financial firms over the financial crisis. This may be explained by the high exposure of Canadian financial firms to US markets during the period of the crisis. However, in the transition to the post financial crisis period, the risk of financial firms decreases more rapidly than that of industrial firms. With the exception of board size and CEO duality, most governance mechanisms examine, including insider ownership, board independence, institutional ownership, financial transparency and compensation committee independence, have differential impacts on financial vs. non-financial firms. Finally, we find that Canadian firms headquartered in Quebec have higher credit risks than Canadian firms headquartered in other provinces.
Author: United States. Congress. Senate. Committee on Governmental Affairs
Publisher:
ISBN:
Category : Credit ratings
Languages : en
Pages : 126
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Book Description
