The Q-theory of mergers and acquisitions proposes that takeovers of low-Q targets by high-Q acquirers should be value creating as acquirers redeploy the targets' assets. Recent evidence on the direct relationship between Q and value creation is mixed. We present a simple model which suggests...

We study the evolution of the board among firms experiencing a sudden negative performance shock and highlight the influence of the CEO in determining the changes. Over 40% of the original directors depart the board and boards become more independent in the three years following...

A rational analysis of analyst behavior predicts that analysts immediately and without bias incorporate information into their forecasts. Several studies document analysts' tendency to systematically underreact to information and are inconsistent with rationality. Other studies indicate that...