We examine how corporate tax avoidance relates to the tone of narrative disclosure in annual reports. Using a difference-in-differences matching approach, we find that firms engaging in more tax avoidance issue more ambiguous annual reports. The positive relation is more pronounced for firms...

We build a competition network that links two industries through their common market leaders. Industries with higher centrality on the competition network have higher expected stock returns because of higher exposure to the cross-industry spillover of distress shocks. The competition intensity...

This study examines the relationship between home-alone CEOs (i.e. when the CEO is the only insider on the board of directors) and corporate risk-taking. Using Ln(volatility of monthly return) as the corporate risk-taking proxy and a sample of 14,274 observations throughout the period 1996-2018,...

We examine reverse mergers (RMs) in the biotechnology industry and find that, when compared to initial public offerings (IPOs), RMs are smaller, have significantly lower market valuations relative to size, and generally invest less. We also find that RMs exhibit positive abnormal returns on the...

We test for the presence of adverse selection among firms adopting the fair value option for liabilities (FVOL) embedded in SFAS 159. The FVOL is a controversial accounting choice because it allows firms to increase earnings when credit quality deteriorates. We find that firms with higher credit...

Drawing on the transactional model of stress and leader-member exchange (LMX) theory, we examine the role of performance pressure in relation to unethical pro-organizational behavior (UPB). We propose that (1) employee perceived performance pressure and LMX interact to increase employees’...

Index tracking is a popular form of asset management. Typically, a quadratic function is used to define the tracking error of a portfolio and the look back approach is applied to solve the index tracking problem. We argue that a forward looking approach is more suitable, whereby the tracking...

New creative approaches are needed to manage emerging biotechnology innovations, regulations, and payor environments to enhance product pipeline productivity, valuation, and risk management. Biopharmaceutical firms must make dynamic resource allocation decisions on their relative levels of...