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.

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