We investigate the influence of shareholder-manager incentive alignment on the cost of debt using a sample of dual-class firms, where managerial voting rights and cash-flow rights can be separated. We find the cost of debt financing increases in managerial voting rights and decreases in...

We examine the relationship between customer and supplier firms' abnormal accruals. We propose “earnings management” hypothesis and “customer demand shock” hypothesis. We find that customer firms' demand shocks link customer and supplier abnormal accruals as they propagate along the...