A Synthesis of Agency and Managerial Power Theories and Its Applications to Corporate Governance, Management Compensation, and Firm Performance. The existing models of corporate governance in economics and finance based on agency theory do not successfully portray all modern corporations. Thus the importance of a new and rigorous way to study corporate governance can be hardly exaggerated. This project will provide a synthesized theory of corporate governance and is expected to produce highest- ....A Synthesis of Agency and Managerial Power Theories and Its Applications to Corporate Governance, Management Compensation, and Firm Performance. The existing models of corporate governance in economics and finance based on agency theory do not successfully portray all modern corporations. Thus the importance of a new and rigorous way to study corporate governance can be hardly exaggerated. This project will provide a synthesized theory of corporate governance and is expected to produce highest-quality research publishable in top-tier journals. This will, among others, enhance Australia's standing as a knowledge nation. This project is also expected to contribute to the discussions on how to improve corporate governance and regulation of management compensation both in Australia and abroad. Read moreRead less
Discovery Early Career Researcher Award - Grant ID: DE120100501
Funder
Australian Research Council
Funding Amount
$375,000.00
Summary
The Advising Boards, corporate risk-taking and firm performance. Corporate governance, in particular the role of corporate boards, has been at the centre of recent regulatory reforms. To advance our understanding on the advising role of boards, this project examines boardroom social connections, entrepreneur directors, and how the advising boards contribute to corporate risk management and firm performance.
What do boards do? The measurement of board activity, its impact on firm valuation and board responses to the financial crisis. This study examines what corporate boards do using a novel measurement approach. It is expected that this measure will be widely adopted by industry and academia.
Risk management policies and practices of major Australian firms. High profile corporate failures attributable to incorrect hedging strategies have recently drawn attention to corporate financial risk management, although its important role in financial management is far more ubiquitous and pervasive. The project will shed light on the internal processes of corporate risk management which previous studies have not addressed. It will produce a 'stock-take' of current practices enabling assessment ....Risk management policies and practices of major Australian firms. High profile corporate failures attributable to incorrect hedging strategies have recently drawn attention to corporate financial risk management, although its important role in financial management is far more ubiquitous and pervasive. The project will shed light on the internal processes of corporate risk management which previous studies have not addressed. It will produce a 'stock-take' of current practices enabling assessment against theoretical models and identification of current 'best practice'. Against this backdrop, Australian firms will be able to assess the merits of their current policies and practices, and assist corporate outsiders (regulators, analysts, researchers) in better understanding corporate risk management. Read moreRead less
Discovery Early Career Researcher Award - Grant ID: DE150100895
Funder
Australian Research Council
Funding Amount
$369,000.00
Summary
Executive Overconfidence. This project aims to analyse the benefits and costs of appointing overconfident individuals as Chief Executive Officers (CEOs), their subsequent impact on corporate performance and litigation-risk, and how this CEO overconfidence may be harnessed through appropriate regulation and incentive-based contracts. The project will examine the circumstances in which firms appoint overconfident individuals as CEOs and how such individuals may affect firm performance, including t ....Executive Overconfidence. This project aims to analyse the benefits and costs of appointing overconfident individuals as Chief Executive Officers (CEOs), their subsequent impact on corporate performance and litigation-risk, and how this CEO overconfidence may be harnessed through appropriate regulation and incentive-based contracts. The project will examine the circumstances in which firms appoint overconfident individuals as CEOs and how such individuals may affect firm performance, including takeover performance and litigation risk. The project aims to analyse whether regulations, such as the Sarbanes-Oxley Act, can help to harness CEO overconfidence. Additionally, it will assess the optimal way to compensate overconfident CEOs to maximise firm value.Read moreRead less