Corporate governance and securities class actions

Autor:	David Tan, Victoria J. Clout, Larelle Chapple
Rok vydání:	2013
Předmět:	business.industry Corporate governance Matched control Nominating committee Agency cost Economics Accounting Control sample business General Business Management and Accounting
Zdroj:	Australian Journal of Management. 39:525-547
ISSN:	1327-2020 0312-8962
Popis:	This study investigates the governance attributes of firms that have been subject to securities class actions (SCAs). There has been a recent sizable increase in the number of firms subject to SCAs in Australia. We examine a sample of firms that have been subject to SCAs due to disclosure breaches and match the firms by industry and size to a control sample. First, we examine the compliance culture of the SCA firms via the frequency of Australian Securities Exchange (ASX) queries of the firm and find that the frequency of ASX queries is positively associated with the occurrence of a SCA. Secondly, we provide evidence that SCA firms exhibit weaker levels of corporate governance than the matched control sample. In addition, we contribute to the understanding of firms subject to SCAs and their corporate governance attributes. Our results suggest the presence of a nomination committee may be associated with higher agency costs and that the influence of CEO duality may reduce the effectiveness of a nomination committee.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::9b2bed89e1aa0709e309c7730c51b587 https://doi.org/10.1177/0312896213512320 Zobrazit plný text záznamu