This paper examines the sizes of the fines, damage awards, remediation costs, and market value losses imposed on companies that violate environmental regulations. Firms that violate environmental laws suffer statistically significant losses in the market value of firm equity. The losses,...

We examine several theoretical and empirical issues concerning punitive damage awards and their importance to business. First, we argue that previous justifications of punitive damage awards ignore the role of private contracting and reputation in assuring contractual performance. In the absence...

Fraud scandals can create incentives to change managers in an attempt to improve the firm's performance, recover lost reputational capital, or limit the firm's exposure to liabilities that arise from the fraud. It also is possible that the revelation of fraud creates incentives to change the...

During the last couple of decades, courts have intervened in employment relationships by allowing employees to circumvent the workers' compensation liability restrictions. Recent papers point to firms' divesting themselves of operations whose employees handled dangerous substances as a way of...

This paper shows that allowing wealthy individuals to influence the outcome of their trials through the purchase of legal services can be consistent with the optimal penalty literature. Using this analysis, the author reviews some of the advantages and disadvantages of varying the length of jail...

This paper shows that most of the large recent increases in campaign spending for federal and state offices can be explained by higher government spending. This result holds for both federal and state legislative campaigns and gubernatorial races and across many different specifications. The...