Starjournal Quotation Laux, Christian, Loranth, Gyöngyi, Morrison, Alan D. 2018. The Adverse Effect of Information on Governance and Leverage. Management Science (MS), 64 (4), 1510-1527.


RIS


BibTeX

Abstract

We study the effect that internal information systems have on a firm’s leverage and corporate governance choices. Information systems lower governance costs by facilitating more targeted interventions. But they also generate asymmetric information between firms and their investors. As a result, firms may attempt to signal their superior quality by assuming more leverage. In some circumstances, this can reduce governance incentives and result in inferior outcomes. Investors anticipate this effect, and it renders information systems inefficient.

Tags

Press 'enter' for creating the tag

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Management Science (MS)
Citation Index SSCI
WU Journalrating 2009 A+
Starjournal Y
Language English
Title The Adverse Effect of Information on Governance and Leverage
Volume 64
Number 4
Year 2018
Page from 1510
Page to 1527
Reviewed? Y
DOI http://dx.doi.org/10.1287/mnsc.2016.2599
Open Access N

Associations

People
Laux, Christian (Details)
Loranth, Gyöngyi (Former researcher)
External
Morrison, Alan D. (University of Oxford, United Kingdom)
Organization
Institute for Finance, Banking and Insurance IN (Details)
Google Scholar: Search