Theses and Dissertations

Date of Award


Document Type


Degree Name

Doctor of Philosophy (PhD)


Business Administration

First Advisor

Dr. Monika K. Rabarison

Second Advisor

Dr. Diego Escobari

Third Advisor

Dr. Incheol Kim


Corporate governance is one major research topic in financial economics. Studies in this area explore how much severe agency problems firms have and how to mitigate such agency problems to benefit the firms and their investors. In this dissertation, I investigate whether outside directors’ dissention has a monitoring role. The first essay tests whether outside directors’ dissention increases firm value through outside directors’ monitoring role. The second essay examines outside directors’ dissention on earnings management. I found supportive evidences that outside directors’ dissention can increase firm value and reduce earnings management. Also, only aggressive dissentions can lead higher firm value and less earnings management. Consistent with prior studies, these findings suggest that outside directors play a monitoring role and mitigate agency problems. In addition, this dissertation not only provides supportive evidences but also overcomes major challenges in most of empirical studies in corporate governance. I use the sample representing outside directors’ real voting activities, so a strong assumption that outside directors have any interest different from the one of managers and arbitrary definitions of directors’ independence are not used in this dissertation.


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