The role of corporate governance in the write‐off decision

Kristina Minnick

Review of Financial Economics, 2011, vol. 20, issue 4, 130-145

Abstract: The recent popularity of write‐offs allows for examination of the role governance plays in the write‐off decision. I find that well governed companies are more likely to announce write‐offs. Additionally, better governed firms announce smaller write‐offs relative to poorly governed firms. The evidence also indicates that the stocks of well governed firms experience announcement abnormal returns that are over six percent higher than those of poorly governed firms. The results suggest better governed firms take a pro‐active approach to reveal bad news early, and thereby mitigate further uncertainty for investors.

Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1016/j.rfe.2011.10.002

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:revfec:v:20:y:2011:i:4:p:130-145

Access Statistics for this article

More articles in Review of Financial Economics from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().