We analyze equity financing decisions by firms with major customer relationships to assess whether major trading relationships create interdependence in policies and market values. We find supplier issuance decisions have significant negative effects for large customers, which become more...

We examine whether the market for ICOs can alleviate asymmetric information and incentive problems through self-imposed governance mechanisms despite the limited regulation in this market. We propose what we call the substitution hypothesis which states that market forces incentivize ICO issuers...

We examine the labor market consequences for directors who adopt poison pills. Directors who become associated with pill adoption experience significant decreases in vote margins and increases in termination rates across all their directorships. They also experience a decrease in the likelihood...

We propose and test the value reversal hypothesis, which holds that takeover defenses that enhance value when a firm is young become costly over time. Consistent with this hypothesis, we find that (i) takeover defenses are sticky and are rarely removed, and (ii) the average relation between firm...

We examine the product market sanctions resulting from financial misrepresentation. We generate a direct measure of product market sanctions and find that after a firm is accused of fraud, its customers impose real and significant economic sanctions on the firm. Using transactional data to track...

We propose and test an efficiency explanation for why firms deploy takeover defenses using initial public offering (IPO) firm data. We hypothesize that takeover defenses bond the firm's commitments by reducing the likelihood that an outside takeover will change the firm's operating strategy and...

We examine how a firm's organizational complexity affects innovation portfolio decisions in response to an exogenous shock to innovation incentives. Using the 2013 medical device sales tax as a quasi-natural experiment, we find that firms with a complex organizational structure, as proxied by...