In this study, we explore the market reaction to the announcement of stock repurchase plans, and the mutual influence between the actual fulfillment rate of stock repurchase plans and the degree of earnings management. From the perspective of earnings management behavior, this paper also...

This study assesses whether individual-level trust between the board chair and the CEO affects firm performance. We find that chair-CEO trust is positively associated with firm performance. Additional tests suggest the relationship between trust and firm performance is causal, with more...

We identify the endogenous social effects proposed by Manski (1993) in firm R&D spending. By using state-level Uniform Trade Secrets Act (UTSA) enactments as exogenous shocks, we find that focal firms respond positively to peers' R&D expenditure. The results suggest that managerial learning and...

We examine whether rival CEOs’ overconfidence influences a focal firm’s research and development (R&D) expenditure. We propose a stylized model based on an R&D competition game with CEOs having a keeping-up-with-the-Joneses preference. Our model predicts that the overconfidence level of...

This paper investigates whether executives with thrill-seeking tendencies engage in greater tax avoidance. Our results show a strong negative association between CEO thrill-seeking and a firm’s cash effective tax rate. We further find that thrill-seeking has a considerably stronger effect on...

We investigate the effect of CEO hedging on the likelihood and characteristics of M&A decisions. Because of their higher degree of risk tolerance, hedged CEOs are more likely to engage in M&As and are more likely to acquire private and smaller targets. M&A deals by hedged CEOs appear to create...

We test the seminal Grossman and Hart (1988) model on the optimality of the one-share-one-vote share structure against the dual-class share structure in a laboratory experiment. Our result shows qualitative support to their theoretical prediction asserting that the more efficient contender of...

We test the seminal Grossman and Hart (1988) model on the optimality of the one-share-one-vote share structure against the dual-class share structure in a laboratory experiment. Our result shows qualitative support to their theoretical prediction asserting that the more efficient contender of...

The animated discourse on corporate social responsibility towards stakeholders in the last two years, particularly as embodied through the terms ESG, corporate purpose and stakeholderism (which will be used in this article interchangeably) had reached a turning point even before the COVID-19...

We examine CEO partisanship and the speed of adjustment to target leverage ratios. Republicans, who prior literature views as risk-averse, are expected to move more aggressively to their targets when over-levered and more slowly when under-levered. However, Republicans’ dislike of taxes...