Issues in Corporate Governance and Finance, Volume 12 (Advances in Financial Economics)

511 Pages·2007·2.2 MB·English

by  Mark Hirschey

ISSUES IN CORPORATE
GOVERNANCE AND FINANCE
ADVANCES IN FINANCIAL
ECONOMICS
Series Editor: M. Hirschey, K. John and
A. K. Makhija
Volume 6: Advances in Financial Economics
Volume 7: Innovations in Investments and
Corporate Finance
Volume 8: Coporate Governance and Finance
Volume 9: Corporate Governance
Volume 10: The Rise and Fall of Europe’s
New Stock Markets
Volume 11: Corporate Governance: A Global Perspective
ADVANCES IN FINANCIAL ECONOMICS VOLUME 12
ISSUES IN CORPORATE
GOVERNANCE AND
FINANCE
EDITED BY
MARK HIRSCHEY
Anderson Chandler Professors of Business
University of Kansas
KOSE JOHN
Charles William Gerstenberg
Professor of Banking and Finance
New York University
ANIL K. MAKHIJA
David A. Rismiller Professor of Finance
The Ohio State University
Amsterdam – Boston – Heidelberg – London – New York – Oxford
Paris – San Diego – San Francisco – Singapore – Sydney – Tokyo
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CONTENTS
LIST OF CONTRIBUTORS ix
PART I: ISSUES IN CORPORATE GOVERNANCE
MANAGERIAL POWER IN THE DESIGN OF
EXECUTIVE COMPENSATION: EVIDENCE FROM
JAPAN
Stephen P. Ferris, Kenneth A. Kim, Pattanaporn 3
Kitsabunnarat and Takeshi Nishikawa
MARKET-VALUE-MAXIMIZING OWNERSHIP
STRUCTURE WHEN INVESTOR PROTECTION IS
WEAK
Beni Lauterbach and Efrat Tolkowsky 27
CORPORATE GOVERNANCE AND PERFORMANCE
OF BANKING FIRMS: EVIDENCE FROM ASIAN
EMERGING MARKETS
Abdul Hadi Zulkafli and Fazilah Abdul Samad 49
ON THE DUTY OF CARE OF INSTITUTIONAL
INVESTORS: EVIDENCE ON PARTICIPATION OF
MUTUAL FUND MANAGERS IN SHAREHOLDER
MEETINGS IN ISRAEL
Amzaleg Yaron, Ben-Zion Uri and Rosenfeld Ahron 75
v
vi CONTENTS
GOOD MANAGERS INVEST MORE AND PAY LESS
DIVIDENDS: A MODEL OF DIVIDEND POLICY
Nalinaksha Bhattacharyya 91
CORPORATE DOWNSIZING AND CEO
COMPENSATION
Alexandros P. Prezas, Murat Tarimcilar and 119
Gopala K. Vasudevan
THE EXTERNAL MONITORING BODIES’ VIEW OF
THE BOARD INDEPENDENCE IN THE NEW PUBLIC
FAMILY FIRMS
Imants Paeglis and Dogan Tirtiroglu 137
OWNERSHIP STRUCTURE, FINANCIAL RENT AND
PERFORMANCE: EVIDENCE FROM THE
MALAYSIAN MANUFACTURING SECTOR
Ei Yet Chu 165
BOARD OF DIRECTOR CONFIGURATIONS IN
MUTUAL FUND SPONSORS: EARLY EVIDENCE OF
BOARD-LEVEL PERFORMANCE
Scott Besley, Steve P. Fraser and Christos Pantzalis 203
EXPROPRIATION, WEAK CORPORATE
GOVERNANCE AND POST-IPO PERFORMANCE:
CHINESE EVIDENCE
Peng Cheng, Jean Jinghan Chen and Xinrong Xiao 237
Contents vii
PART II: OTHER ISSUES IN FINANCE
BLACK–SCHOLES–MERTON, LIQUIDITY, AND THE
VALUATION OF EXECUTIVE STOCK OPTIONS
Don M. Chance and Tung-Hsiao Yang 271
UNOBSERVED HETEROGENEITY AND THE
TERM-STRUCTURE OF DEFAULT
Koresh Galil 311
FINANCIAL SECTOR DEVELOPMENT AND
SUSTAINABLE ECONOMIC GROWTH IN
REGIONALLY CO-INTEGRATED EMERGING
MARKETS
Ritab S. Al-Khouri 345
THE LONG-TERM RISK EFFECTS OF THE
GRAMM-LEACH-BLILEY ACT (GLBA) ON THE
FINANCIAL SERVICES INDUSTRY
Vijay Gondhalekar, C.R. Narayanaswamy and 361
Sridhar Sundaram
HOW DO SMALL FIRMS IN DEVELOPING
COUNTRIES RAISE CAPITAL? EVIDENCE FROM
A LARGE-SCALE SURVEY OF KENYAN MICRO
AND SMALL-SCALE ENTERPRISES
Christopher J. Green, Peter Kimuyu, Ronny Manos 379
and Victor Murinde
viii CONTENTS
UNITED STATES VENTURE CAPITAL FINANCIAL
CONTRACTING: FOREIGN SECURITIES
Douglas J. Cumming 405
OPERATIONAL HEDGES AND FOREIGN-
EXCHANGE EXPOSURE: THE EXPERIENCE OF U.S.
MNCs DURING THE ASIAN FINANCIAL CRISIS
Bill Francis, Iftekhar Hasan and Christos Pantzalis 445
SHARE REPURCHASES IN NEW ZEALAND
Hardjo Koerniadi, Ming-Hua Liu and Alireza 481
Tourani-Rad
LIST OF CONTRIBUTORS
Rosenfeld Ahron Ben-Gurion University of the Negev,
Beer-Sheva, Israel
Ritab S. Al-Khouri Yarmouk University, Irbid, Jordan
Scott Besley University of South Florida, Tampa, FL,
USA
Nalinaksha University of Alaska Anchorage, AK,
Bhattacharyya USA
Don M. Chance LouisianaStateUniversity,BatonRouge,
LA, USA
Jean Jinghan Chen University of Surrey, Guildford, UK
Peng Cheng University of Surrey, Guildford, UK
Ei Yet Chu University Malaysia Sarawak, Malaysia
Douglas J. Cumming Schulich School of Business, York
University, Toronto, Ontario, Canada
Stephen P. Ferris University of Missouri-Colombia,
Colombia, MO, USA
Bill Francis Lally School of Management and
Technology, Troy, NY, USA
Steve P. Fraser United States Air Force Academy, CO,
USA
Koresh Galil Ben-Gurion University of the Negev,
Beer-Sheva, Israel
Vijay Gondhalekar Grand Valley State University, Grand
Rapids, MI, USA
ix