We study whether industrial firms risk-shift in response to distress risk increases induced through hurricane strikes. Using new proxies capturing deliberate managerial decisions about the risk of a firm's operating segment portfolio, differences tests suggest that hurricane strikes prompt...

Prior studies find that entrenched managers destroy firm value by choosing lower risk negative NPV projects. In this paper, I argue that enhanced monitoring by boards and internal controls established following the passage of the Sarbanes-Oxley Act of 2002 and concurrent reforms to stock...