This paper considers the effects of the 1993 legislation limiting the deductibility of non-performance-based executive compensation for corporate income tax purposes. We begin by describing the specific provisions of the legislation, and we discuss its possible effects on overall compensation...

We construct preferences towards risk and uncertainty as reflected in the cultural heritage of CEOs managing public firms in the U.S. We demonstrate that auditors take into account cultural traits of CEOs in the pricing of their audit services. We also show CEO cultural heritage is associated...

This study examines the impact of the Tax Cuts and Jobs Act of 2017 (TCJA) on U.S. corporate investment. We examine U.S. firms and compare them to Canadian firms from 2017 to 2019 in a multivariate firm fixed-effects difference-in-differences analysis. Our results indicate that investment...

We use the unique nature of the director and officer liability protection law applicable to Nevada-incorporated firms to study how liability protection is related to corporate tax avoidance. We find that firms incorporated in Nevada avoid 32 percent more federal corporate tax as a fraction of...

In this study, the author explores the effect of industry competition on public R&D subsidy effectiveness. He finds a non-linear threshold effect of industry competition on R&D subsidy effectiveness. Specifically, R&D subsidy effectiveness reaches its peak when industry competition lies between...

We examine whether CEO extraversion, an important personality trait associated with leadership, affects firms' expected cost of equity capital. We measure CEO extraversion using CEOs' speech patterns during the unscripted portion of conference calls. After controlling for several CEO and firm...

We propose a framework that advances our understanding of CEO retention decisions in misreporting firms. Consistent with economic intuition, outside directors are more likely to fire (retain) CEOs when retention (replacement) costs are high relative to replacement (retention) costs. When the...