Climate change and its impacts raise momentous concerns. Hundreds of companies worldwide are aggressively getting in front of it, since they are the constituency with the strongest links to climate change: companies are the primary source of greenhouse gas emissions; equally, by deploying R&D,...

Employment of physicians by hospitals – typically referred to as vertical integration – has increased significantly. Received theories fail to explain a key fact: The extent of vertical integration in not-for-profit (NFP) hospitals is substantially higher than in for-profit (FP) hospitals....

More than 20% of U.S. firms are nonprofit, yet this organizational form has received little attention in corporate finance. This paper takes a step towards closing this gap by examining investment choices of nonprofit hospitals. Most hospitals hold large financial assets, and hospital-specific...

Freeman et al. (2004) offer a spirited rebuttal to our paper The Corporate Objective Revisited from the perspective of stakeholder theory. However, they fall short in making a case against the logic of shareholder value maximization. The authors confound issues of value and values, ignore the...

The original motivation for golden parachutes was to provide managers the incentive to maximize shareholder wealth without concerns of job loss from change of control. But they may also create the incentive to run down a firm and make it an attractive takeover candidate, especially in the case...

We examine the interactive roles of creditors, CEOs, firm performance, and investment in intangibles on asset divestitures viewed by equity markets as quot;good newsquot; or quot;bad news.quot; Markets react more negatively to divestitures undertaken by firms with higher prior debt-equity...

Prior empirical research on US hospitals mostly concludes that ownership type – not-for-profit (NFP) versus for-profit (FP) – does not affect financial performance. This is surprising, in light of strong predictions from theories of NFP firm behavior. We revisit the issue with a...