Does enhanced legal accountability of non-director executives improve workplace safety? We exploit an exogenous increase in executive legal accountability triggered by Delaware Supreme Court’s 2009 “Gantler ruling” to address this question. In a difference-in-differences framework, we show...

Using staggered adoptions of Constituency Statutes (CS laws) that authorize but not mandate managers to consider non-owner stakeholders' interests in business decisions, we find that the effect of expanding managers' discretion in considering stakeholder interests on the cost of equity depends...

We propose that active options markets facilitate shareholder activism and improve informational efficiency, thereby enhancing corporate social responsibility (CSR) performance. We find supportive evidence that options trading is positively related to firms’ CSR scores. Our identification...