We use U.S. top executives' insider trades to develop a new proxy for a firm's corporate governance quality. Our proxy avoids several shortcomings of common corporate governance measures used in prior research. We show that our proxy is significantly associated with earnings misstatements, illegal stock option backdating, and Tobin's Q. In addition, our proxy is more powerful than two popular corporate governance indices in identifying earnings misstatements and illegal option backdating.
| Speaker: | Dr Bin KE Associate Professor, The Pennsylvania State University |
| When: |
2.00 pm - 3.00 pm |
| Venue: | School of Accountancy [Map] Level 4, Meeting Room 4.1 |
| Contact: | Office of the Dean Email: SOAR@smu.edu.sg |