Committee on Affiliated Associations and Regional Branches

The Role of Regional Party Branches

One of the most persistent findings in coalition research is the proportionality rule (‘Gamson’s Law’) that guides the allocation of portfolios between parties. This article tests the assumption that a similar rule is at work within parties. More specifically, it examines the allocation of ministerial posts to regional party branches in 25 postwar cabinets in Austria between 1945 and 2008. Draw...

Regional Committee for the Eastern Mediterranean

Affiliated bankers on board and conservative accounting

We examine the tradeoff between having affiliated bankers on board and conservative accounting for mitigating debtholder-shareholder conflicts. We argue that affiliated bankers on board provide lenders with private information and control rights, thereby lowering debtcontracting demand for conservatism in public financial reports. We find that firms with affiliated bankers on board have lower c...

Regional Committee for the Eastern Mediterranean

Affiliated Banker on Board and Conservative Accounting

We examine the effect of lending banks’ board representation (affiliated banker on board, or AFB) on conservative accounting. We argue that private information obtained through board representation enhances the monitoring and the influence of lenders and therefore reduces their demand for conservatism-facilitated debt contracting. Consistent with our hypothesis, we find that conservatism is mar...