We study whether firms in the rain-sensitive sectors time their investments to generate value in response to extreme deviations in rainfall conditions. Using Indian monsoon data, we show that the market-based valuations of rain-sensitive firms significantly declines in the immediate aftermath of...

We examine whether the effect of increased creditor rights on corporate borrowing depends on firm's access to internal capital. By exploiting a creditor protection reform in India, empirical outcomes strongly indicate that strengthening of creditor rights leads to increased corporate borrowing...

In this study, we examine the effect of the market for corporate control (MCC) on firm risk-taking exploiting the staggered enactment of country-level merger and acquisition (M&A) laws of thirty-four countries as a plausibly exogenous source of variation in MCC. Consistent with the theoretical...

Using 19 emerging economies from 1990 to 2018, we find a positive effect of geopolitical risk on mergers and acquisition (M&A) deal frequency driven mainly by an increase in domestic M&A. We, however, find a negative effect of geopolitical risk on the M&A deal size, highlighting the deadweight...

Examining nineteen emerging economies from 1990 to 2018, we identify a positive effect of geopolitical risk on mergers and acquisition (M&A) deal frequency, driven mainly by an increase in domestic M&A. We, however, find a negative effect of geopolitical risk on the M&A deal size, highlighting...

Mandatory regulations that obligate the firms to spend on CSR activities can influence the corporate strategies. In this paper, we look at how mandatory CSR expenditure laws impact corporate risk-taking. Using covenants of the resource-based allocation to balance the stakeholder-shareholder...

We examine whether the extreme rainfall condition affects corporate borrowings. Based on the saliency argument, the findings show that extreme rain conditions induce expansion of corporate borrowing among rain-sensitive firms. We further document the heterogeneous treatment effect of this rain...