This study examines how managers change their forecasting behavior as a debt covenant violation (DCV) approaches. Consistent with a change, we find that management forecasts are more optimistic in the quarter before a DCV, and this result is stronger when firms face a higher risk of shifting...

We investigate restatement contagion to strategic alliance partners, and we document a negative stock price reaction for non-restating firms whose alliance partners announce an accounting restatement. This contagion effect is larger when the institutional bonding between alliance partners is...

We find that banking relationships built through institutional cross-ownership influence the granting of loans as well as loan contract terms. Specifically, firms newly added to institutional cross-owners’ portfolios are more likely to borrow from banks that previously issued loans to other...

We examine the supply-side determinants of debt covenants included in loan agreements. Controlling for borrower characteristics, we find evidence that the covenants that lead arranger banks include in new contracts persist into future contracts for at least three years. We document that this...

Mobile internet devices reduce trading frictions and information search costs for investors, but also introduce attention-competing activities,such as social networking. We use exogenous nationwide and city-level outages of the Blackberry Internet Service (BIS) to investigate the effect of...

Using data from a Big 4 professional services firm, I examine the performance evaluation score penalties associated with part-time working arrangements. First, I establish that performance evaluation scores (1) suffer for employees working part-time, and (2) rebound when part-timers return to...

We examine whether political corruption impedes innovation. Using a comprehensive sample of US firms, we find that corruption has a substantial, negative relation with the quantity and quality of innovation. These results are robust to using various fixed effects, proxies for corruption and...

Political corruption imposes substantial costs on shareholders in the U.S. Yet, we understand little about the basic factors that constrain or exacerbate the negative consequences of political corruption. Using federal corruption convictions data, we find that firm-level economic rents and...

Mobile internet devices reduce trading frictions and information search costs for investors, but also introduce attention-competing activities,such as social networking. We use exogenous nationwide and city-level outages of the Blackberry Internet Service (BIS) to investigate the effect of...