This study examines voluntary disclosure after successful technological innovations and the associated cost of equity capital (COEC) consequences. We find that firms with successful technological innovations, proxied by economic and scientific values of patents, are more likely to voluntarily...

We document a dramatic increase in the market valuation of cash holdings by U.S. firms from 1971 to 2010. The value of one dollar increases from $0.35 in the 1970s to $0.97 in the 2000s, indicating that shareholders place much more value on cash in recent years. This increase in cash value is...

Researchers argue that analysts' information acquisition efforts increase firm value by facilitating monitoring of firms' activities and, thereby, reducing agency costs (e.g., Jensen and Meckling [1976]; Healy and Palepu [2001]). However, prior research provides limited and inconclusive...

Both bond rating agencies and equity analysts evaluate public companies and report their findings and opinions to market participants. Regulation Fair Disclosure (FD) changed the dynamics of the market and placed restrictions on the information that companies could disclose to analysts. Debt...

This paper examines the influence of dividend covenants in corporate bonds on investment and operating performance. Prior literature analytically demonstrates that by limiting dividend distribution to shareholders, dividend restrictions effectively place a minimum on investment expenditures...

We examine how the adoption of International Accounting Standard No. 27 (hereafter, IAS 27) consolidation rules affects firm level investment efficiency. IAS 27, effective in Taiwan for fiscal years beginning after 2005, defines the “control” criteria for consolidated entities as majority...

We examine how labor-friendly institutional features, i.e., laborism, relate to corporate investment efficiency in labor in a sample that represents 33 countries during 1996 to 2012. We consider various dimensions of laborism such as the presence of left-leaning government, rigidity of employee...

This paper investigates how supply chain management (SCM) efficiency affects the value investors attach to the change in a company's inventory holdings. Based on a large number of U.S. firms from 1971 to 2013, we find that, on average, one dollar of inventory change is valued at $0.507 in the...