The Q-theory of mergers and acquisitions proposes that takeovers of low-Q targets by high-Q acquirers should be value creating as acquirers redeploy the targets' assets. Recent evidence on the direct relationship between Q and value creation is mixed. We present a simple model which suggests...

We study the evolution of the board among firms experiencing a sudden negative performance shock and highlight the influence of the CEO in determining the changes. Over 40% of the original directors depart the board and boards become more independent in the three years following...

We study the interaction between firm uncertainty and corporate policies, emphasizing the role of asymmetries in the distribution of performance shocks. Conditional on volatility and other characteristics, firms with more negatively skewed performance shocks adopt more conservative policies,...

This paper examines the evolution of corporate boards following a large performance decline. Over 40% of the original directors depart the board during the three years following underperformance. Measures of initial CEO influence over the board such as CEO ownership are associated with smaller...

The dissertation consists of two essays. In the first essay, we measure herding by institutional investors in the new economy (internet) stocks during 1998-2001 by examining the changes in the quarterly institutional holdings of internet stocks relative to an average stock. More than 95% of the...

The purpose of this research is to examine whether managers of troubled firms engage in income-increasing earnings management for capital market purposes to maintain a listing on the NASDAQ National Market. Troubled firms are defined as those firms whose share price has fallen below the...

This dissertation consists of two chapters. First chapter examines whether herding by actively managed equity funds affects their performance. For this purpose, first the effect of herding on stock returns is reexamined and evidence is found that, during the herding quarter, stocks bought...

This dissertation examines two different topics relatedto the issuance of a convertible debt security. The firstessay addresses the question of how managers set theequity value in a convertible debt issue. A convertibledebt security has value derived from an equitycomponent and a debt component....