Extension: Assets Write-Down in China: Incentives and the Effect of Corporate Governance
Assets Write-Down in China: Incentives and the Effect of Corporate Governance presents the following source proposition: I argue that firms with weaker corporate governance mechanisms engage more in reversals activities after writing down assets. This proposition is pertinent to Kaal's source-bound claim that Directors who are inadequately informed about the expected standard of conduct will underestimate their personal liability exposure and engage in riskier behavior than is desirable for the company itself. The proposed response is an extension: the relationship should remain limited to the retrieved source proposition and the mapped Kaal claim unless fuller source review supports a broader conclusion.
risk-and-incentivescorporate-governancelaw-and-legal-systemsdisclosuregovernance-designhistorical-responsescholarly-literaturecrossref