We examine the relationship between NCAA basketball end-of-season tournament (“March Madness”) results and stock returns of firms located in the vicinity of competing teams' campuses. We find that stocks of firms located around expected winners (higher ranked teams) perform poorly if the...

Purpose: The purpose of the paper is to examine the relationship between litigation risk and payout policy. Design/methodology/approach: The authors employ various regression techniques including probit, logit and tobit regression methodologies to study the relationship between litigation risk...

Purpose: The purpose of this paper is to understand the association between litigation risk and working capital management. Design/methodology/approach: The authors employ four different regression techniques (OLS regressions, regressions with industry and time controls, median regressions, and...

Many financial scandals appear to depend on a lack of skepticism on the part of their victims. For example, sophisticated investors trusted Bernie Madoff, despite early warning signs of implausible returns. Our study investigates how education and personality explain skeptical behavior in...

We find that firms where women have more power in the top management team, measured by female executives' plurality and pay slice, face fewer operations-related lawsuits. This effect is robust to several treatments of endogeneity and does not appear to be driven by female executives' greater...