Firms contract capital expenditure and reduce new debt issuance following the bankruptcy of an industry-peer. The spillover effect is transitory and declines with industrial distance. Industries that are financially constrained, geographically concentrated or competitive are more vulnerable to...

This paper examines whether shareholder litigation contributes to the decline in U.S. stock market listings. We find that higher litigation risk induces firms to delist. We establish causality by exploiting a 1999 decision by the Ninth Circuit Court that reduced litigation risk. The effect is at...

We investigate the impact of stock market cycles on unlisted firms' investment activities. We find that bull markets is associated with increased capital expenditures, new establishments, and employment growth in the unlisted corporate sector, while bear markets is associated with a decrease in...