We study whether and how financial reporting concerns are priced by insurers that sell Directors' and Officers' (Damp;O) insurance to public firms. As Damp;O insurers typically assume the liabilities arising from shareholder litigation, the premiums they charge for Damp;O coverage reflect their...

We examine the effect of litigation risk on management's decision to issue earnings forecasts. We use a new ex ante measure of litigation risk, namely, the Directors and Officers liability insurance premium. This measure bypasses significant problems associated with the estimation of ex ante...

Purpose – The UN Global Compact (GC) is the world's largest voluntary corporate social responsibility (CSR) initiative. Signatory companies voluntarily agree to abide by the GC ten principles and explicitly declare compliance with social and human rights, environmental protection, and...

Litigation risk has been hypothesized to affect managerial behavior in a number of ways. An understanding of the determinants of litigation risk is a necessary first step to analyzing managerial behavior. We examine the determinants of an ex-ante measure of litigation risk, namely, Directors and...

We examine the effect of litigation risk on managers' decision to issue earnings forecasts. We use a new ex ante measure of litigation risk, namely, the Directors and Officers liability insurance premium. This choice bypasses significant problems associated with the estimation of ex ante...

We examine the relationship between corporate governance and default risk for a sample of firms cited in the Securities and Exchange Commission’s Accounting and Auditing Enforcement Releases (AAERs). Using hazard analysis of actual default incidence and OLS regressions of a continuous variable...

SUMMARY This paper proposes a framework for an ensemble bankruptcy classifier that uses if–then rules to combine the outputs from a heterogeneous set of classifiers. A genetic algorithm (GA) induces the rules using an asymmetric, cost‐sensitive fitness function that includes accuracy and...