We examine whether firms in industries with a more mobile labor force engage in less earnings management activities to reduce expected separation costs stemming from labor turnover. Employing an occupation-based measures of labor mobility we find that labor mobility is negatively related to...

We examine whether firms in industries with greater labor mobility exhibit less myopic behavior. Using an occupation-based measure of labor mobility for a large sample of US firms, we show that greater labor mobility is associated with fewer myopic operating decisions. This association is...

We predict that a firm's greater accounting comparability with its industry peers facilitates its learning from those peer firms' research and development (R&D) investments, allowing that firm to have greater innovative efficiency. We estimate accounting comparability using pro-forma capitalized...

One of the most critical decisions top management in corporate groups has to make is the allocation of resources among competing investment opportunities across the group. Information asymmetry between the parent and subsidiaries, however, creates agency conflicts that complicate such...

Using a comprehensive sample of US banks for years 2001 to 2016, we split the pay gap between the CEO and rank-and-file employees into two: CEO pay gap and VP pay gap. We examine the effect on bank performance of the tournament incentives arising from these different pay gaps. We find that CEO...

We document that analysts cater to short-term investors by issuing optimistic target prices. Catering dominates among analysts at brokers without an investment banking arm as they face lower reputational cost. The market does not see through the analyst catering activity and their forecasts lead...

This paper investigates the relation between foreign experience and CEO compensation. Using a sample of large UK firms from the FTSE 350 index from 2003 to 2011, we find that foreign-born CEOs and national CEOs with foreign working experience receive significantly higher levels of total...

In this paper, we investigate the association between venture capital (VC) backing and internal control quality, as well as the effect of VC backing on the informativeness of material weaknesses in internal control disclosures. We find that VC-backed companies have stronger internal control...

This paper explores how managers' and supervisors' equity incentives impact the likelihood of committing corporate fraud in Chinese-listed firms. Previous research has shown that corporate fraud in China is a widespread phenomenon and has severe consequences for affected firms and executives....