Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
958568 | Journal of Empirical Finance | 2010 | 13 Pages |
Abstract
This paper investigates the conflict of interests between shareholders and debtholders by examining the work effort of outside directors when a company experiences financial distress or has a high financial leverage. We find that at both company level and individual director level: (i) outside directors of a firm with higher financial distress exert less work effort in controlling for financial leverage; (ii) outside directors of a firm with a higher financial leverage work harder controlling for financial distress.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Hsin-I Chou, Hui Li, Xiangkang Yin,