The impact of cross-border bank M&As on bank risk remains an open question. Though geographically diversifying bank M&As have the potential to reduce the risk of bank insolvency, they also have the potential to increase that risk due to the increase in risk-taking incentives for bank managers...

As a result of globalization trends many businesses are able to raise capital not only in their domestic market, but also abroad. Among the stock exchanges which have managed to attract foreign companies is the Warsaw Stock Exchange. Over the past few years many companies from Ukraine have...

This short essay, which appeared in a Lithuanian law review, analyzes how consequences of information policies in smaller developing countries relate to their success or failure in attracting foreign investment capital. The central purpose of this work is to encourage government officials,...

Application of information technology to gain a competitive advantage is well known and often used by business firms in developed countries. A fairly recent technological development is use of the Internet to provide corporate financial information, that is, Internet financial reporting. The...

We explore insider trading at multinational firms and find multinational firm insiders make larger trades followed by larger abnormal returns relative to those at domestic firms. Multinational firm insider trading profits are concentrated among top-level insiders (CEO, President and Chairman),...

We develop a model of a cooperative power game between a chief executive officer (CEO) and labor over a proposed corporate outsourcing, and test the model’s predictions concerning the decision to outsource, division of profits, and post-outsourcing firm performance using a sample of...

In a sample of 7,209 environmental, social, and governance (ESG) incidents involving 63 incident countries and more than 6,000 firms, we show that abnormal event returns are negative (-0.6%) on average but less so when incidents occur abroad rather than at home. This domestic-foreign return gap...

Pástor and Veronesi (2012) develop a general equilibrium model to examine the relation between policy uncertainty and asset prices. Extending to their study, we develop a novel measure of firms’ uncertainty about the change in bilateral trade flows between each country and the US. We...

We find that active global mutual funds in the U.S. can use foreign information to select U.S. multinationals’ stocks. To invest internationally, these funds collect information from the foreign countries where they invest. Such foreign information helps funds invest in U.S. multinationals...

Russia invaded Ukraine on February 24, 2022 and led many companies to apply sanctions in Russia. This paper uses this event to investigate the role of relationship-specific capital and ESG scores (our proxy of goodwill capital) on corporate sanctions. Our results indicate that firms with such...