governance mechanism by disciplining managers' investment decisions. In the two years following an M&A lawsuit (a lawsuit where … peer firms respond to the increased litigation risk by reducing abnormally high investment expenditures. Finally, the … industry-wide deterrence effect on firms' suboptimal investment behavior …

theory and welfare economics, which are restricted to the certainty case, with Harsanyi's pathbreaking attempt at extending …

Political activism positively affects firm innovation. Firms that support more politicians, politicians on … innovation. The results are consistent with the hypothesis that political activism is valuable because it helps reduce political … uncertainty, which, in turn, fosters firm innovation. Also consistent with this hypothesis, we show that politically active firms …