Vu Quang Trinh

We examine the impacts of earnings management on the tail risks of banks using a dataset of 3297 bank‐year observations across 157 publicly traded commercial banks from 12 countries, covering 2002–2022. Our findings suggest that banks engaging in earnings management activities exhibit higher tail risks. However, this relationship is moderated by two critical factors: board gender diversity and environmental–social (ES) reporting. Specifically, our analysis indicates that the elevated tail risks associated with higher levels of earnings management can be mitigated by stronger female representation on boards or through higher ES ratings. These insights provide important financial implications and policy guidelines for multiple stakeholders engaging with the international banking sector and ES seeking to strengthen governance framework structures while mitigating risk‐taking.

This study examines the relationships between carbon emissions, firm‐level climate change exposure, and corporate cash reserves, with a focus on whether climate exposure mediates the link between carbon emissions and cash holdings. Using a dataset of 15,889 firm‐year observations from 2,537 firms across 51 countries during the period 2002 to 2021, the findings reveal a partial mediating effect of climate change exposure on the relationship between carbon emissions and corporate cash reserves. Specifically, firms with higher carbon risks tend to exhibit increased climate exposure, as reflected in earnings conference calls, which subsequently leads to higher cash reserves. This pattern is consistent across both general indicators of climate exposure and firm‐specific vulnerabilities to regulatory changes. Furthermore, the results remain robust after addressing endogeneity concerns through difference‐in‐difference estimations based on the Paris Agreement (COP21) event. These insights deepen our understanding of how high‐carbon‐emitting firms adjust their cash management strategies in response to market concerns about climate change.

This study investigates the impact of “busy” independent directors on corporate financial leverage. Using a sample of 3321 Chinese listed firms from 2004 to 2019, we find that firms with busier boards tend to have higher leverage, with corporate tax avoidance acting as a mediating mechanism. Supporting the reputational incentive hypothesis, busy boards discourage aggressive tax avoidance strategies that would otherwise allow managers to accumulate excess cash reserves. Consequently, these firms become more reliant on external debt financing to meet potential investment needs. Our findings highlight the role of “busy” independent directors in mitigating agency conflicts and shaping financial strategies.

This study investigates the impact of gender diversity (i.e., the presence of female executives on corporate boards) on the sentiment of cybersecurity information disclosure, including its likelihood, magnitude, and tone. We develop a unique dataset providing an extensive view of the development and evolution of cybersecurity‐related disclosure practices among prominent publicly traded US companies over a 19‐year period (2002–2020). We find strong evidence that female executives are more likely to disclose, and they report significantly more cybersecurity‐related information compared to their male counterparts. Additionally, female executives adopt a more conservative, uncertain, and litigious tone in their cybersecurity disclosures than male executives. The results also support the notion of a critical mass of female executives on the board and align with various theories, emphasising the importance of gender diversity in promoting high‐quality cybersecurity disclosure practices within firms. Furthermore, we examine several channels contributing to the heterogeneity of cybersecurity disclosures between female and male executives, and consider the effects of the black swan events (i.e., the financial crisis and the COVID‐19 pandemic).