This study exploits the staggered adoption of the inevitable disclosure doctrine (IDD) by U.S. state courts as an exogenous shock that generates variations in the proprietary costs of disclosure. We find that firms respond to IDD adoption by reducing the level of disclosure regarding their...

This paper examines whether and to what extent loan officers' labor mobility affects the origination and modification of U.S. residential mortgage loans. Our identification relies on a spatial regression discontinuity design instituted by staggered adoption of the inevitable disclosure doctrine...

In this study, we utilize the setting of bank M&As to examine banks’ role in tax planning intermediation through helping their clients establish offshore tax haven operations. After a bank M&A, the clients of the target bank “involuntarily” switch to a significantly larger relationship...

This paper studies the effects of international coordination failure on resource allocations. Employing the U.S. withdrawal from the 2015 Paris Agreement as an experiment, we find that U.S. polluting firms increase their emissions and receive bank financing at lower costs after the sudden...

Corporate America is increasingly taking public stances on divisive sociopolitical issues via social media. Exploring S&P 1500 firms’ Twitter responses to the Black Lives Matter (BLM) movement following George Floyd’s death in 2020, we first document a positive association between proxies...

We examine whether the re-evaluation of past investments spurs monitoring activities and investment decisions for long-term growth. For identification, we rely on accounting rules and use the regression kink design (RKD). We focus on a narrow window around a point at which a firm’s...

This article investigates the role of financial analysts in product quality failures. Using a comprehensive sample of product recalls, we establish three main results. First, analyst coverage on average increases the frequency of product quality failures, particularly when managers are inclined...

Banks’ mandatory switch from an incurred credit loss model (IL) to an expected credit losses model (EL) in certain jurisdictions can affect loan pricing and securitization in foreign markets. Comparing U.S. banks with IFRS subsidiaries to U.S. domestic banks, we find that the former charge...