We examine the impact of covenant violation on corporate operational efficiency. Using aggregate measures of operational efficiency developed by Demerjian et al. (2012), we find that covenant violations are negatively associated with operational efficiency, suggesting lower operational...

We examine the impact of CEO tenure on corporate labor investment efficiency. While some studies show that CEO entrenchment increases in tenure (e.g., Hermalin and Weibach, 1998), others argue that managerial expertise builds over time in the office (e.g., Graf-Vlachy et al., 2020). Using a...

We investigate how high-ability managers affect trade credit policies of U.S. publicly traded companies from 2003 to 2016. Consistent with the prediction of an “Imbalance of power” in the supply chain, we find that firms with more able managers implement more favorable trade credit policies...

We examine the impact of firm-level political risk on cash flow sensitivity of cash. Using a large sample of US firms from 2003 to 2018, we find that the cash flow sensitivity of cash decreases in political uncertainty and the impact of political risk is asymmetric to cash flow types (positive...

We examine the impact of corporate geographic location on tax planning in U.S. firms from 1996–2018. We find that urban firms are associated with a significantly lower level of aggressive tax planning than rural firms. Further analysis shows that the soft information advantage to investors and...