This paper examines whether firm-level political risk predicts compliance violation costs. We find a positive relationship between political risk and the likelihood, quantity, and magnitude of compliance violation fines and settlements. This relationship is robust to various cost measures and...

Stewardship theory suggests CEO duality can provide strong leadership and facilitate the development and coordination of firm strategy. These benefits should affect both firm risk and financial performance. We use the 2020 coronavirus outbreak as a natural experiment to determine whether CEO...

Using acquisition data from 2010-2018, we examine the impact of acquisitions by foreign SOEs on politically connected domestic U.S. competitors. We examine the initial response to such acquisition announcements, the attempts of industry incumbents to increase their own political connections, and...

Using political corruption conviction data from the U.S. Department of Justice, we examine the impact of local corruption on firms’ debt maturity structure while exploring both demand-side and supply-side explanations. Our results support the demand-side story and indicate that firms located...

This study investigates the effects of firm-level political risk on corporate investments and operating efficiencies for industrially diversified and focused firms. Using firm-level political risk data from Hassan et al.(2019), we document that both political risk and diversification lead to...

We examine the immediate impacts of COVID-19 on FDIC chartered banks’ performance. Our experimental design analyzes the performance of community banks and large banks before and during the COVID-19 pandemic. Community banks outperform large banks significantly in several key measures in the...

We document that firms without strong corporate cultures hold excess inventory to mitigate the operational risk compared to their peers with strong corporate cultures. Further analyses reveal that firms balance the costs and benefits of excess inventory holdings. Weak corporate culture values...

Using a large panel of US BHC over the 2001:Q1-2015:Q4, we investigate the risk-taking behaviors of banks within a comparison perspective – between public and private banks – where there exists substantial differences of asymmetry information and agency problems. We document evidence of...

Earnings management can be either opportunistic, adding noise to reported earnings, or informative about a firm's underlying economic performance, adding valuable information to financial reports. This study examines earnings management in banks with differing levels of information asymmetry....

Using a large panel of US bank holding companies from 2001 to 2015, we investigate the association between functional diversification and bank earnings management. We document a positive relationship between bank earnings management and bank diversification. Our findings are consistent with the...