Consistent with Jensen's [Jensen, M., 2005. Agency costs of overvalued equity. Financial Management 34, 5-19] agency-costs-of-overvalued-equity prediction, we find that overvaluation is statistically and economically related to subsequent income-increasing earnings management. This relation is...

Prior research contends that weak legal regimes discourage lender enforcement of contracts by making it either costly or ineffective. However, Diamond observes that this lender passivity can be overcome by structuring debt as a short-term loan. His argument is that an arrival of bad news in the...

Shimla is a teeming city, with a population of 140,000. It is located in the north Indian Himalayas, in an area of high seismicity that was rocked by a devastating earthquake a hundred years ago. However, it is oblivious of the ticking time bomb below its foundations. Initiating risk reduction...