When customers face financing frictions, they can retain suppliers through nonmonetary incentives, such as sharing their technology, thereby fostering supplier innovation. Using customer-supplier pairs in the U.S., we find that suppliers of customers who violate covenants become more innovative,...

By using unique hand-collected project-level investment data, we show that lengthy equity issuance regulation is positively related to the probability of subsequent project changes and a deterioration in project returns. The effects are more pronounced for firms in a highly competitive industry...

We examine whether a firm’s organizational capital (OC) affects its labor investment efficiency. We find that a higher level of OC is related to smaller deviations from the optimal level of labor investment according to economic conditions (higher labor investment efficiency). We find that...