2026-09-20T00:18:22Zhttps://dspace.mit.edu/server/oai/requestoai:dspace.mit.edu:1721.1/672132022-01-13T07:54:52Zcom_1721.1_7582com_1721.1_7581col_1721.1_131022
S.P. Kothari and Joseph P. Weber.
Mehta, Mihir N. (Mihir Nandkishore)
Sloan School of Management.
Sloan School of Management
2011-11-18T21:02:05Z
2011-11-18T21:02:05Z
2010
2010
http://hdl.handle.net/1721.1/67213
759082508
Thesis (Ph. D.)--Massachusetts Institute of Technology, Sloan School of Management, 2010.
Cataloged from PDF version of thesis.
Includes bibliographical references (p. 61-64).
Bertrand and Mullainathan (2003) find that managers shielded from the threat of takeovers exert less effort to maximize firm value, consistent with a 'quiet life' hypothesis. I study whether the governance role of financial reporting can mitigate adverse effects arising from managerial preferences for a quiet life. I hypothesize and find evidence that after changes in the mid 1990's to Delaware's takeover protection regime, Delaware firms with higher financial reporting quality (FRQ) have better operating performance and higher capital investment intensity. Furthermore, the above relation between FRQ and performance is stronger for firms operating in less competitive industries, and firms with staggered boards. Overall, the results suggest that financial reporting can help mitigate adverse effects associated with managerial preferences for a quiet life.
Ph.D.
89 p.
eng
Massachusetts Institute of Technology
M.I.T. theses are protected by
copyright. They may be viewed from this source for any purpose, but
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http://dspace.mit.edu/handle/1721.1/7582
Sloan School of Management.
Financial reporting quality and the quiet Life by Mihir N. Mehta.
Thesis
application/pdf
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Publication
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<Abstract>Bertrand and Mullainathan (2003) find that managers shielded from the threat of takeovers exert less effort to maximize firm value, consistent with a 'quiet life' hypothesis. I study whether the governance role of financial reporting can mitigate adverse effects arising from managerial preferences for a quiet life. I hypothesize and find evidence that after changes in the mid 1990's to Delaware's takeover protection regime, Delaware firms with higher financial reporting quality (FRQ) have better operating performance and higher capital investment intensity. Furthermore, the above relation between FRQ and performance is stronger for firms operating in less competitive industries, and firms with staggered boards. Overall, the results suggest that financial reporting can help mitigate adverse effects associated with managerial preferences for a quiet life.</Abstract>
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