All Outputs (13)

The impact of bank mergers on corporate tax aggressiveness (2024)
Journal Article
Chen, J., Mishra, T., Song, W., Zhang, Q., & Zhang, Z. (2024). The impact of bank mergers on corporate tax aggressiveness. Journal of Corporate Finance, 84, Article 102540. https://doi.org/10.1016/j.jcorpfin.2024.102540

We study whether borrowers’ opaque practices, such as tax aggressiveness, are affected by their lenders’ engagement in mergers and acquisitions (M&As). Our findings suggest that borrowers’ tax aggressiveness is negatively associated with bank mergers... Read More about The impact of bank mergers on corporate tax aggressiveness.

The impact of shareholder litigation risk on income smoothing (2023)
Journal Article
Li, Y., Song, W., Sun, T., & Zhang, Q. (2023). The impact of shareholder litigation risk on income smoothing. Review of Quantitative Finance and Accounting, 61(4), 1379-1413. https://doi.org/10.1007/s11156-023-01193-w

This paper investigates whether and how shareholder litigation influences income smoothing. Using the ruling of the Ninth Circuit Court of Appeals in 1999 as an exogenous shock to the threat of litigation, we find that the increasing difficulty of cl... Read More about The impact of shareholder litigation risk on income smoothing.

Shareholder litigation and bank risk (2022)
Journal Article
Degl'Innocentia, M., Fiordelisi, F., Song, W., & Zhou, S. (2023). Shareholder litigation and bank risk. Journal of Banking and Finance, 146, Article 106707. https://doi.org/10.1016/j.jbankfin.2022.106707

Does a decrease in shareholder litigation enhance managers’ monitoring efforts by ensuring adequate firm risk management? We explore how state universal demand (UD) laws (which limit shareholder litigation as a mechanism to discipline managers), affe... Read More about Shareholder litigation and bank risk.

Recession managers and mutual fund performance (2021)
Journal Article
Chen, J., Lasfer, M., Song, W., & Zhou, S. (2021). Recession managers and mutual fund performance. Journal of Corporate Finance, 69, Article 102010. https://doi.org/10.1016/j.jcorpfin.2021.102010

We find that fund managers who began their careers during recessions produce superior returns. This superior performance is not unconditional, as they exhibit better market timing than their non-recession counterparts in recessions, but do not demons... Read More about Recession managers and mutual fund performance.

Stakeholder Orientation and Corporate Payout Policy: Insights from State Legal Shocks (2020)
Journal Article
Ni, X., Song, W., & Yao, J. (2020). Stakeholder Orientation and Corporate Payout Policy: Insights from State Legal Shocks. Journal of Banking and Finance, 121, Article 105970. https://doi.org/10.1016/j.jbankfin.2020.105970

We employ a difference-in-differences estimation approach to examine the impact of stakeholder orientation on corporate payout policy. The empirical test exploits the enactment of US state-level constituency statutes, which allow directors to conside... Read More about Stakeholder Orientation and Corporate Payout Policy: Insights from State Legal Shocks.

General managerial skills and corporate social responsibility (2019)
Journal Article
Chen, J., Liu, X., Song, W., & Zhou, S. (2020). General managerial skills and corporate social responsibility. Journal of Empirical Finance, 55, 43-59. https://doi.org/10.1016/j.jempfin.2019.10.007

We show that a CEO’s general managerial skills are negatively related to the level of corporate social responsibility (CSR) undertaken by the firm. This finding is robust to alternative measures of CSR and alternative econometric specifications. The... Read More about General managerial skills and corporate social responsibility.

When women are on boards, male CEOs are less overconfident (2019)
Journal Article
Chen, J., Leung, W. S., Song, W., & Goergen, M. (2019). When women are on boards, male CEOs are less overconfident. Harvard Business Review,

A number of governments (notably those in India, California, and parts of Europe) are pushing for greater female representation in the boardroom. And several studies suggest why: Having women on the board results better acquisition and investment dec... Read More about When women are on boards, male CEOs are less overconfident.

Why female board representation matters: The role of female directors in reducing male CEO overconfidence (2019)
Journal Article
Chen, J., Leung, W. S., Song, W., & Goergen, M. (2019). Why female board representation matters: The role of female directors in reducing male CEO overconfidence. Journal of Empirical Finance, 53, 70-90. https://doi.org/10.1016/j.jempfin.2019.06.002

We suggest a novel reason why there might be a need for female board representation. Female participation in the boardroom attenuates the CEO’s overconfident views about his firm’s prospects as we find that male CEOs at firms with female directors ar... Read More about Why female board representation matters: The role of female directors in reducing male CEO overconfidence.

Passing the dividend baton: The impact of dividend policy on new CEOs' initial compensation (2019)
Journal Article
Chen, J., Song, W., & Goergen, M. (2019). Passing the dividend baton: The impact of dividend policy on new CEOs' initial compensation. Journal of Corporate Finance, 56, 458-481. https://doi.org/10.1016/j.jcorpfin.2019.04.004

We examine how firms' dividend policy affects the initial compensation of their newly appointed CEOs. We focus on newly appointed CEOs to isolate the effect of dividends on compensation and to provide new insights into an aspect largely neglected by... Read More about Passing the dividend baton: The impact of dividend policy on new CEOs' initial compensation.

CEO and director compensation, CEO turnover and institutional investors: Is there cronyism in the UK? (2019)
Journal Article
Chen, J., Goergen, M., Leung, W. S., & Song, W. (2019). CEO and director compensation, CEO turnover and institutional investors: Is there cronyism in the UK?. Journal of Banking and Finance, 103, 18-35. https://doi.org/10.1016/j.jbankfin.2019.03.019

This paper provides new evidence that correlated abnormal compensation of CEOs and directors is symptomatic of agency problems associated with cronyism. We find that director abnormal compensation has a negative impact on the likelihood of CEO turnov... Read More about CEO and director compensation, CEO turnover and institutional investors: Is there cronyism in the UK?.

The Performance of Acquisitions by High Default Risk Bidders (2019)
Journal Article
Bruyland, E., Lasfer, M., De Maeseneire, W., & Song, W. (2019). The Performance of Acquisitions by High Default Risk Bidders. Journal of Banking and Finance, 101, 37-58. https://doi.org/10.1016/j.jbankfin.2019.01.019

We investigate the takeover strategies of high default risk acquirers and their value impact. We find that these bidders select bigger, less profitable and unrelated targets, pursue transactions during recessions, and pay with shares by offering targ... Read More about The Performance of Acquisitions by High Default Risk Bidders.

Does bank stakeholder orientation enhance financial stability? (2019)
Journal Article
Leung, W. S., Song, W., & Chen, J. (2019). Does bank stakeholder orientation enhance financial stability?. Journal of Corporate Finance, 56, 38-63. https://doi.org/10.1016/j.jcorpfin.2019.01.003

Using the staggered enactment of constituency statutes across US states, we find that banks with directors whose legal duties are expanded to consider stakeholder and long-term interests significantly reduce risk-taking by increasing capital and shif... Read More about Does bank stakeholder orientation enhance financial stability?.

Does CDS trading affect risk-taking incentives in managerial compensation? (2019)
Journal Article
Chen, J., Leung, S., Song, W., & Avino, D. (2019). Does CDS trading affect risk-taking incentives in managerial compensation?. Journal of Banking and Finance, Article 105485. https://doi.org/10.1016/j.jbankfin.2019.01.004

We find that managers receive more risk-taking incentives in their compensation packages once their firms are referenced by credit default swap (CDS) trading, particularly when institutional ownership is high and when firms are in financial distress.... Read More about Does CDS trading affect risk-taking incentives in managerial compensation?.