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Cyber Governance: Growing Expectations for Information Security Oversight and Accountability

Harvard Corporate Governance

At the same time, this dependency exposes corporate issuers to an increasing amount of information security-related risk, raising alarm among stakeholders. Good information security oversight should seek to reduce a company’s potential risk of harmful economic outcomes. more…)

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Accounting Information and Risk Shifting with Asymmetrically Informed Creditors

Harvard Corporate Governance

Specifically, we ask how the availability of information, public or private, about the economic condition of a potential borrower affects the cost of debt, the borrowers’ incentive to take on risky projects, and the stability of lending relationships over time.

Banking 109
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Separating Ownership and Information

Harvard Corporate Governance

Our paper Separating Ownership and Information , forthcoming in the American Economic Review , provides a new perspective on the separation of ownership and control—the fundamental problem in corporate governance according to classical theories (Berle and Means 1932; Jensen and Meckling 1976).

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Secret and Overt Information Acquisition in Financial Markets

Harvard Corporate Governance

Site visits are considered costly and significant activities for investors to acquire information. The idea can be viewed as an extension of Regulation Fair Disclosure (Reg FD), which aims to prevent selective disclosure of material nonpublic information and ensure a level playing field for all investors.

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Know Your Customer: Informed Trading by Banks

Harvard Corporate Governance

In particular, universal banks could use borrowers’ confidential information when selling securities to investors or trading in capital markets. Despite the persisting political and scholarly debate, it is surprising how little we know about banks’ use of private information and banks’ proprietary trading in general.

Banking 230
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FinCEN Requires Beneficial Ownership Information

Machen McChesney

The Corporate Transparency Act (“CTA”) was enacted into law as part of the National Defense Act for Fiscal Year 2021 and requires the disclosure of the beneficial ownership information (otherwise known as “BOI”) of certain entities from people who own or control a company.

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Indexing and the Incorporation of Exogenous Information Shocks to Stock Prices

Harvard Corporate Governance

This study presents direct evidence that increased indexing impairs the flow of information into stock prices. We rely on currency shocks only because they are relatively simple to measure and quantify, so our findings suggest information flow impairment in general. more…)