Risk-return association is one of the major concerns for economics and business disciplines. While the standard economics and finance theory assume that the sign of the relationship should be positive (individuals are assumed to be risk adverse), since Bowman (1980) many researchers have found...

This study examines whether clients’ business strategies are a factor in determining the occurrence of financial reporting irregularities and the level of audit effort. We use the organizational strategy theory of Miles and Snow (1978, 2003) to develop a comprehensive measure of business...

This study examines whether clients’ business strategies are a factor in determining the occurrence of financial reporting irregularities and the level of audit effort. We use the organizational strategy theory of Miles and Snow (1978, 2003) to develop a comprehensive measure of business...

While tax avoidance strategies result in greater after-tax cash flows, they can involve uncertain future outcomes, which can impose significant costs on firms. Thus, the extent to which tax avoidance increases firm risk is unclear. This paper re-examines the relation between tax avoidance and...

One of the most prominent contemporary success stories is tourism. This industry began to significantly increase only in 1960, and during the last 50 years, tourism revenues and number of outgoing people have increased by a number of times. Therefore, the tourism sector is highly attractive to...

Using a large sample of private firms over the period from 2001 to 2013, we study the effect of corruption uncertainty on corporate investments and cash holdings. We find that a higher uncertainty about the level of corruption is associated with lower corporate investments and lower cash...

I investigate how investors value tax planning and tax uncertainty for the case of publicly listed German firms. I compare two recent approaches how to account for tax uncertainty: the separate view by Drake et al. (2019) and the composite view by Jacob and Schütt (2020) to find the better...

This paper examines the interplay between the real and financial decisions of the competitive firm under output price uncertainty. The firm faces additional sources of uncertainty that are aggregated into a background risk. We show that the firm always chooses its optimal debt-equity ratio to...

This paper examines the interplay between the real and financial decisions of the competitive firm under output price uncertainty. The firm faces additional sources of uncertainty that are aggregated into a background risk. We show that the firm always chooses its optimal debt-equity ratio to...

Theory suggests that uncertainty can play an important role in determining firms' decisions to shut down operations. In this paper, I provide evidence that input-price uncertainty leads to significant and persistent reductions in plant exits in the context of Brazilian manufacturing. I analyze...