This study examines the influence of Mexico's efforts to improve corporate governance on firm performance and transparency. We utilize compliance data from the Code of lsquo;Best' Corporate Practices, disclosed annually by public firms in Mexico, as a measure of corporate governance strength. We...

We examine how financial reporting transparency and quality of Mexican firms vary with corporate governance. We utilize compliance data from the Code of 'Best' Corporate Practices, disclosed annually by public firms in Mexico. We document a significant increase in compliance over the 2000-2004...

This paper examines the influence of a firm’s business model on the relative persistence of profit margins in the U.S. airline industry. The strategic management literature describes a firm’s business model as reflecting how that firm chooses to compete in the marketplace. Given this linkage...

The practice of shifting manufacturing activities to lower wage countries has thrived lately as firms attempt to reduce labor and other costs. However, success has been elusive for many of these firms. We investigate the determinants of offshoring success, with emphasis on the role of...

This study examines how analysts respond to public information when setting their stock recommendations. Specifically, for a sample of stocks that experience large stock price movements, we model the determinants of analysts’ recommendation changes. Using an ordered probit model based on...

This paper analyzes whether fair value estimates of fund net asset values (NAVs) produced by private equity managers are accurate and unbiased predictors of future discounted cash flows (DCF). We exploit the fact that private equity funds have finite lives to compare reported NAVs to DCFs based...

The collapse of Arthur Andersen provides a unique quasi-experimental setting to study the implications of mandatory auditor rotation for public firms. Consistent with the extant literature on mandatory auditor rotation, we hypothesize the selection of a new auditor is a function of agency and...

This study develops a theory that predicts the lower the degree to which firms' earnings are correlated with the industry the greater the probability a firm will issue a biased signal of firm performance. The theory provides for causal predictions in our empirical tests in which we examine the...

We examine the Securities and Exchange Commission's assertion in the Pay Ratio Disclosure rule that the ratio of CEO to employee pay is useful to shareholders for say-on-pay (SOP) voting decisions. Using an estimated pay ratio for a broad panel of commercial banks from 2010-2017, we find that...