The winner-takes-all business model followed by many U.S. Internet firms predicts that spending on intangibles will exhibit increasing profitability returns-to-scale. That is, larger expenditures should be more profitable per dollar of investment than small expenditures because larger...

We shed light on whether stock option repricings are in the best interests of shareholders by conducting an event study that uses non-contaminated and timely announcements of stock option repricings by Canadian firms. While U.S. firms publicly disclose their repricings in proxy statements months...

This paper examines the extent to which the rise in U.S. market-to-book ratios over the period 1980-2000 is due to expenditures on R&D becoming more profitable versus simply becoming more prevalent. More profitable R&D increases the numerator of the market-to-book ratio, while the biased nature...

Despite the central role played by human capital in entrepreneurship, little is known about how employees in entrepreneurial firms are compensated and incentivized. We address this gap in the literature by studying 18,935 non-CEO compensation contracts across 1,809 privately-held venture-backed...

Systematic analysis of U.S. capital markets reveals important empirical facts that analytical modeling or empirical research seeking to explain the 1998-2001 movements needs to recognize. There is no single bubble point at which U.S. capital markets had an epiphany in which they realized that...

In a series of influential studies, McKinsey (2015, 2018, 2020) report a statistically significant positive relation between the industry-adjusted EBIT margin of global samples of large public firms and the racial/ethnic diversity of their executives. However, when we revisit McKinsey’s tests...