More Intense Application of Governance Mechanisms Such as Mandated by Sarbanes-Oxley

question 45

True/False

More intense application of governance mechanisms such as mandated by Sarbanes-Oxley and Dodd-Frank may cause firms to take on fewer risky projects and thus increase potential shareholder wealth.

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Definitions:

Neuroticism

Neuroticism is a personality trait characterized by a tendency to experience negative emotions such as anger, anxiety, or depression more frequently and intensely than others.

Agreeableness

One of the five major dimensions of personality, characterized by attributes such as kindness, empathy, and a willingness to cooperate and get along with others.

Extraversion

A personality trait characterized by outgoingness, high energy, and positive emotions; extraverts tend to enjoy being around people.

Biology

the scientific study of life and living organisms, encompassing their structure, function, growth, evolution, and distribution.