Three empirical studies of corporate finance

This thesis comprises three empirical investigations within the realm of corporate finance. The initial study scrutinizes the ramifications of board reforms, revealing an augmentation in Research and Development (R&D) expenditure but a concomitant diminution in innovation output. The discernible impact of board reforms on firm innovation is contingent upon variances in national structures. Within developed economies characterized by low corruption levels and robust adherence to the rule of law, board reforms impede innovation. Conversely, in emerging economies marked by weaker adherence to the rule of law and elevated corruption levels, board reforms expedite firm innovation output. These findings bear implications for the formulation and execution of board reforms, underscoring the imperative need to avoid reforms that instigate managerial short-termism and disrupt the innovation ecosystem, thereby engendering adverse effects on long-term growth stimulation. The subsequent two studies investigate the influence of CEO characteristics on firm strategy and decision-making. The second study explores whether CEOs' early experiences with disasters impact the selection of debt structure. Firms led by CEOs who have weathered disasters exhibit a proclivity to transition from bank debt to public debt. The impact of CEOs' early disaster experiences is most conspicuous in circumstances where regulatory oversight is stringent, unemployment risk is lower, and financial distress risk is higher. These findings imply that CEOs' disposition, shaped by early disasters, to undertake additional risks affects corporate debt structure. The third study delves into whether CEOs' early-life disaster experiences correlate with corporate misconduct. A substantial sample of US public companies spanning the period 2001 to 2020 was scrutinized, yielding no compelling evidence to suggest a significant impact of CEOs with early-life disaster experiences on corporate misconduct. This study contributes to the comprehension of CEO behavior, particularly for those entrusted with designing and overseeing effective systems of corporate governance.