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Journal Articles

Research papers authored by Stanford GSB faculty and published in leading peer-reviewed journals that provide rigorous empirical analysis of concepts and theories in corporate governance.

Featured Journal Articles

Christopher S. Armstrong, Jennifer L. Blouina, Alan D. Jagolinzer, David F. Larcker
Journal of Accounting and Economics. August

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2015, Vol. 60, Issue 1, Pages 1 – 17

We examine the link between corporate governance, managerial incentives, and corporate tax avoidance. Similar to other investment opportunities that involve risky expected cash flows, unresolved agency problems may lead managers...

Christopher S. Armstrong, Ian D. Gow, David F. Larcker
Journal of Accounting Research. December

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2013, Vol. 51, Issue 5, Pages 909-950

This study examines the effects of shareholder support for equity compensation plans on subsequent CEO compensation. Using cross-sectional regression, instrumental variable, and regression discontinuity research designs, we find little evidence...

David F. Larcker, Allan L. McCall, Gaizka Ormazabal
Journal of Accounting and Economics. November

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2013, Vol. 56, Issue 2–3, Pages 149–169

This paper examines the economic consequences associated with the board of director’s choice of whether to adhere to proxy advisory firm policies in the design of stock option repricing programs....

Christopher S. Armstrong, David F. Larcker, Gaizka Ormazabal, Daniel J. Taylor
Journal of Financial Economics. August

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2013, Vol. 109 , Issue 2, Pages 327–350

Prior research argues that a manager whose wealth is more sensitive to changes in the firm’s stock price has a greater incentive to misreport. However, if the manager is risk-averse...

David F. Larcker, Eric C. So, Charles C.Y. Wang
Journal of Accounting & Economics. April

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2013, Vol. 55, Issue 2–3, Pages 225–250

Firms with central boards of directors earn superior risk-adjusted stock returns. A long (short) position in the most (least) central firms earns average annual returns of 4.68%. Firms with central...

Christopher S. Armstrong, Christopher D. Ittner, David F. Larcker
Review of Accounting Studies. June

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2012, Vol. 17, Issue 2, Pages 322–351

This study investigates the relation between corporate governance and CEO pay levels and the extent to which the higher pay found in firms using compensation consultants is related to governance...

David F. Larcker, Anastasia A. Zakolyukina
Journal of Accounting Research. May

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2012, Vol. 50, Issue 2, Pages 495–540

We estimate linguistic-based classification models of deceptive discussions during quarterly earnings conference calls. Using data on subsequent financial restatements and a set of criteria to identify severity of accounting problems,...

Alan D. Jagolinzer, David F. Larcker, Daniel J. Taylor
Journal of Accounting Research. December

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2011, Vol. 49, Issue 5, Pages 1249–1274

Most corporate governance research focuses on the behavior of chief executive officers, board members, institutional shareholders, and other similar parties. Little research focuses on the impact of executives whose primary...

David F. Larcker, Gaizka Ormazabal, Daniel J. Taylor
Journal of Financial Economics. August

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2011, Vol. 101, Issue 2, Pages 431-448

This paper investigates the market reaction to recent legislative and regulatory actions pertaining to corporate governance. The managerial power view of governance suggests that executive pay, the existing process of...

Robert Daines, Ian D. Gow, David F. Larcker
Journal of Financial Economics. December

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2010, Vol. 98, Issue 3, Pages 439–461

Proxy advisory and corporate governance rating firms (such as RiskMetrics/Institutional Shareholder Services, GovernanceMetrics International, and The Corporate Library) play an increasingly important role in U.S. public markets. They rank the...

Christopher S. Armstrong, David F. Larcker, Che-Lin Su
Operations Research. July

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2010, Vol. 58, Pages 1090–1106

The two major paradigms in the theoretical agency literature are moral hazard (i.e., hidden action) and adverse selection (i.e., hidden information). Prior research typically solves these problems in isolation, as...

Christopher S. Armstrong, Alan D. Jagolinzer, David F. Larcker
Journal of Accounting Research. May

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2010, Vol. 48, Issue 2, Pages 225-271

This study examines whether Chief Executive Officer (CEO) equity-based holdings and compensation provide incentives to manipulate accounting reports. While several prior studies have examined this important question, the empirical evidence...

David F. Larcker, Tjomme O. Rusticus
Journal of Accounting Research. April

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2010, Vol. 49, Issue 3, Pages 186–205

Instrumental variable (IV) methods are commonly used in accounting research (e.g., earnings management, corporate governance, executive compensation, and disclosure research) when the regressor variables are endogenous. While IV estimation is...

Christopher Ittner, David F. Larcker, Daniel Taylor
Marketing Science. September

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2009, Vol. 28, Issue 5, Pages 825–835

A number of recent marketing studies examine the stock market’s response to the release of American Customer Satisfaction Index (ACSI) scores. The broad purpose of these studies is to investigate...

Christopher S. Armstrong, David F. Larcker
Journal of Accounting and Economics. March

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2009, Vol. 47, Issue 1–2, Pages 50–58

Bernile and Jarrell provide extensive analysis regarding the impact of backdating the stock option exerciseprice on stock returns for a sample of firms identified by the Wall Street Journal. Dhaliwal, Erickson, and...

John E. Core, Wayne Guay, David F. Larcker
Journal of Financial Economics. April

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2008, Vol. 88, Issue 1, Pages 1–25

We examine the press’ role in monitoring and influencing executive compensation practice using more than 11,000 press articles about CEO compensation from 1994 to 2002. Negative press coverage is more...

Christopher D. Ittner, David F. Larcker, Mina Pizzini
Journal of Accounting and Economics. December

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2007, Vol. 44, Issue 3, Pages 300–327

We examine the importance of agency considerations for the mix of salary and performance-based compensation in member-owned medical practices. Performance-based pay increases with the informativeness of clinical productivity measures, and...

David F. Larcker, Scott A. Richardson, Irem Tuna
The Accounting Review. July

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2007, Vol. 82, Issue 4, Pages 963–1008

The empirical research examining the association between typical measures of corporate governance and various accounting and economic outcomes has not produced a consistent set of results. We believe that these...

David F. Larcker, Tjomme O. Rusticus
European Accounting Review. May

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2007, Vol. 16, Issue 1, Pages 207–215

The discussion reinforces and expands on some of the fundamental issues about endogeneity raised by Chenhall and Moers (European Accounting Review, this issue, pp. 173–195). We focus on the econometric...

Joseph J. Gerakos, Christopher D. Ittner, David F. Larcker
Essays in Accounting Theory in Honour of Joel S. Demski. Springer,

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2007, Pages 227–229

U.S. executive compensation traditionally relies on stock options that vest over time. Recently, however, a growing number of institutional investors have called for the use of performance-vested options that link...

David F. Larcker, Scott A. Richardson
Journal of Accounting Research. June

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2004, Vol. 42, Issue 3, Pages 625–658

We examine the relation between the fees paid to auditors for audit and non-audit services, and the choice of accrual measures for a large sample of firms. Using our pooled...

Christopher D Ittner, David F. Larcker, Taylor Randall
Accounting, Organizations and Society. October

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2003, Vol. 28, Issue 7–8, Pages 715–741

This study examines the relation between measurement system satisfaction, economic performance, and two general approaches to strategic performance measurement: greater measurement diversity and improved alignment with firm strategy and value...

Christopher D. Ittner, Richard A. Lambert, David F. Larcker
Journal of Accounting and Economics. January

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2003, Vol. 34, Issue 1-3, Pages 89–127

The paper examines the determinants and performance consequences of equity grants to senior-level executives, lower-level managers, and non-exempt employees of “new economy” firms. We find that the determinants of equity...