Using a sample of companies that restated their earnings over the period 1997-2002, this study finds that the probability of voluntary as opposed to forced restatements is positively related to the independence of both the board of directors and the audit committee. Following both voluntary and...

We reexamine investor tendency to overweight recent experiences when predicting future performance of firms by examining a sample of firms making private equity placements. Our findings are consistent with the projection argument that investors use the recent experiences of other firms to...

We examine investment by different types of institutional investors in underperforming firms with agency problems complicated by laws and regulations: U.S. firms with strong labor unions. As unions have special powers granted by government, unions have to serve the interests of politicians if...