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.

Alan D. Jagolinzer, David F. Larcker, Gaizka Ormazabal, Daniel J. Taylor
The Journal of Finance. March
2020

We analyze the trading of corporate insiders at leading financial institutions during the 2007 to 2009 financial crisis. We find strong evidence of a relation between political connections and informed...

David F. Larcker, Stephen A. Miles, Brian Tayan, Kim Wright-Violich
Corporate Board. June
2019, Vol. 40, Issue 236, Pages 1-5

The article focuses on the practice of chief executive officers (CEO) taking public positions on issues not directly related to their business, also known as CEO activism. Topics covered include...

Ed deHaan, David F. Larcker, Charles McClure
Review of Accounting Studies. February
27 , 2019, Vol. 24, Issue 2, Pages 536-569

We examine the long-term effects of interventions by activist hedge funds. Research documents positive equal-weighted long-term returns and operating performance improvements following activist interventions, and typically conclude that activism is...

Ian D. Gow, David F. Larcker, Peter C. Reiss
Journal of Accounting Reseach. April
19 , 2016, Vol. 54, Issue 2, Pages 477-523

This paper examines the approaches accounting researchers adopt to draw causal inferences using observational (or nonexperimental) data. The vast majority of accounting research papers draw causal inferences notwithstanding the well-known...

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

David F. Larcker, Allan L. McCall, Gaizka Ormazabal
Journal of Law and Economics. February
2015, Vol. 58, Issue 1, Pages 173-204

This paper examines the economic consequences of institutional investors outsourcing research and voting decisions in public company elections to proxy advisory firms. We investigate the implications of these decisions in...

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