The automotive industry has been marred by numerous high-profile scandals in recent decades. Inasmuch as the automotive industry is characterized by strong relationships between manufacturers and suppliers, a scandal’s adverse effects may spread through the supply chain. However, the effect of...

We document that firms increase their investment in ESG activities, a proxy for CSR performance, in anticipation of lawsuits from external stakeholders to mitigate the adverse consequences of such legal externalities. We find that higher CSR performance is also positively related to the...

On February 24, 2022, Russia invaded Ukraine. To signal their repugnance against Russia, corporations from the United States and other countries announced disengagement of their business operations from Russia. The present, substantively focused Frontiers manuscript aims to generate early...

Firms that engage in long-term bilateral relationships with their buyers or suppliers are usually required to make relationship-specific investments. We examine how the values of these long-term specific investments are affected by the quality of governmental contract enforcement. We find that...