The Impact of Tightly-Contested Governance Proposals on Firms’ Narrative Disclosures: Evidence from a Regression-Discontinuity Design
Abstract: Corporate governance and firm disclosure are endogenously determined. We exploit locally exogenous variations in corporate governance created by “close-call” governance-related shareholder proposals, using a fuzzy RDD and text analytics to examine whether better corporate governance causally affects the narratives in corporate disclosures. We find that although better corporate governance in firms leads to more disclosure […]