We examine the impact of climate policy uncertainty on corporate cash policies using news-based measures of climate policy uncertainty. We find that climate policy uncertainty induces high cash flow volatility, which causes firms to increase precautionary cash holdings. The relation between...

Data breaches may affect firms' future performance, financial stability, and risk profiles, thus potentially resulting in increased credit risk. Using firm-level credit ratings and credit default swap (CDS) spreads to proxy for credit risk, we find that data breaches lead to increases in firm...

We investigate the effect of auditor litigation risk on firm-level investment. Exploiting the staggered increase in third-party auditor legal liability in US states as an exogenous shock, we find that increased risk of auditor litigation leads to an increase in corporate investments. This effect...

We investigate the impact of climate policy uncertainty on corporate financing decisions using news-based measures of climate policy uncertainty. We find that an increase in climate policy uncertainty causes firms to reduce leverage. This effect is more pronounced for firms that are financially...

We examine the effect of auditor litigation risk on firm capital structure decisions by exploiting staggered state-level shocks to third-party auditor legal liability in the United States. We find that an exogenous increase in auditor litigation risk leads to an increase in firm leverage ratios...