Agency theory predicts that tighter monitoring can motivate managers to exert higher effort. However, psychology theory suggests that managers may perceive increased monitoring as an indication of distrust, thereby reducing their effort level--known as a crowding-out effect. Prior research on...

Agency theory predicts that tighter monitoring can motivate managers to exert higher effort. However, psychology theory suggests that managers may perceive increased monitoring as an indication of distrust, thereby reducing their effort level -- known as a crowding-out effect. Prior research on...

Firms weigh the costs of public disclosure against the benefits of information transparency when disseminating narrative R&D information. In this paper, we examine whether firms with private information dissemination channels will reduce their public disclosure of narrative R&D information by...

In this paper, we examine the effect of credit defaults swap (CDS) initiation on reference firms' cost management behavior. CDS contracts provide insurance protection for lenders, inducing a shift in bargaining power from borrowers to lenders and an excessive incidence of bankruptcy....