We test two potential hypotheses regarding the effects of major customer concentration on firm profitability. Under the collaboration hypothesis, customer power facilitates collaboration and both the supplier firm and its major customers obtain benefits. Under the competition hypothesis,...

This study examines the usefulness of analysts’ book value forecasts and the economic factors driving analysts’ issuance of these forecasts. We first establish that analysts’ book value forecasts are superior to forecasts that are mechanically imputed from analysts’ own earnings...

We examine how managers’ sleep deprivation affects financial misreporting likelihood. Extant evidence in organizational science research suggests that sleep deprivation increases individuals’ unethical conduct in workplace, presumably due to sleep deprivation-induced cognitive impairment...

Drawing on the political theory of judicial decision making, our paper proposes a new and parsimonious ex ante litigation risk measure: federal judge ideology. We find that judge ideology complements existing measures of litigation risk based on industry membership and firm characteristics....

This paper studies the consequence of reduced cartel enforcement on firm performance. The Department of Justice (DOJ) closed four Antitrust Division field offices in the movement of “Disposing of Unneeded Federal Real Estate”. We find that after the field offices closure, the likelihood of...

This study examines contingencies written in firms’ material product market contracts, focusing on i) exogenous uncertainty as an ex-ante determinant, and ii) operating efficiency and market beta as ex-post consequences. We extract material contracts from firms’ public regulatory filings and...

This paper investigates whether and how federal judges’ political ideology affects opportunistic insider trading. Although federal judges are the ultimate arbiters of insider trading enforcement, whether their ideology matters to insiders’ trading decision is unclear because the primary...

We argue that a firm’s suppliers and customers prefer it to account more conservatively due to information asymmetry and these stakeholders’ asymmetric payoffs with respect to the firm’s performance. We predict that a firm meets this demand for accounting conservatism when suppliers or...