We investigate the diffusion of tax planning across firms, and the real effects and sharing of benefits from such diffusion. Using supply chain relationships among firms as a possible diffusion channel, we find that tax planning spreads from principal customers to their dependent suppliers. We...

This study investigates the effect of corporate hedging on stock price crash risk. We test two competing hypotheses. Under the transparency hypothesis, hedging reduces a firm's information asymmetry and lowers crash risk. Under the opacity hypothesis, hedging decreases financial reporting...

Technology spillovers have previously been shown to positively affect a firm's market value and innovation activities. We build on this literature by showing that value-relevant information from technology spillovers significantly reduces the likelihood of the focal firm experiencing a stock...

We study the consequences of firm-specific stock price crashes (SPCs) by examining whether, and if so, how SPCs affect market information efficiency. This contrasts with prior research that focuses on firm-specific causes or determinants of SPCs. The tension underlying our research question...

Unlike prior research that focuses on determinants of firm-specific stock price crashes (SPCs), we study the consequences of SPCs on market information efficiency. The tension underlying our research question stems from two competing explanations. As an unanticipated shock, a SPC could stimulate...

This paper presents large-sample evidence that firms consider labor unemployment risk when setting their resource adjustment policies. Prior studies find that costs rise more in response to sales increases than they fall in response to sales decreases. Anderson, Banker, and Janakiraman (2003)...