Recently, patients, insurers, and regulators have increasingly focused on hospital quality (the inverse of patient mortality) in the U.S. Using California hospital data from 2006 through 2020, we find evidence that the effects of compensation and competition on hospital quality differ by...

Recent accounting research provides evidence that similar profit-based compensation incentives are used in for-profit and nonprofit hospitals. Because charity care reduces profits, such incentives should lead for-profit hospital managers to reduce charity care levels. Nonprofit hospital...

Agency theory suggests that if a principal observes a signal suggesting that an agent has made a value-destroying decision, then the principal would be more likely to dismiss that agent. We label the increase in the pressure a manager feels to retain his job following an acquisition poorly...

This paper investigates whether fundamental accounting information is appropriately priced in the options market. We find that fundamental accounting signals exhibit incremental predictive power with respect to future option returns above and beyond what is captured by implied and historical...

We examine the incidence, valuation and management of tax-related reputational costs during 2011, a year containing numerous protests that increased scrutiny of corporate tax avoidance. We report three main results. First, consistent with firms incurring tax-related reputational costs, we find...