Pressure from institutional money managers to generate profits in the short run is often blamed for corporate myopia. Theoretical research suggests that money managers' short term focus stems from their career concerns and greater fund transparency can amplify these concerns. Using a...

Pressure from short-horizon investors can hurt investments in innovative, long-run value increasing projects. We explore the efficacy of a commonly proposed tax-based policy tool to mitigate this problem: imposition of differentially greater taxes on short-term capital gains vis-à-vis long-term...

Extant literature documents that aggregate accruals positively predict future market returns and attributes this relation to either changes in discount rates or systematic earnings management. We offer an alternative explanation: aggregate merger and acquisition (M&A) activity drives this...