Do Monitors Monitor? Write-offs and Corporate Governance

نویسندگان

  • Kristina L Minnick
  • Robert H. Smith
چکیده

This paper examines the impact of Corporate Governance and CEO turnover on the writeoff decision, as well as the motivation for companies to take write-offs. Companies with poor monitoring mechanisms take write-offs due to endogenous factors Conversely, companies with strong monitoring mechanisms take write-offs because of exogenous factors, like negative industry shocks. These ”good write-offs” lead to an increase in earnings transparency and result in positive announcement effects, as well as improved liquidity and performance.

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تاریخ انتشار 2003