This paper examines the impact of the repatriation tax provision of the Tax Cuts and Jobs Act (TCJA) on firms’ dividend policy. The findings show that the firms most affected by the repatriation tax provision, i.e., those with high foreign sales, reward shareholders by substantially increasing...

Corporate political geography influences the value of real options because proximity to political power can trigger greater exposure to uncertainty and/or more growth opportunities. Our empirical tests reveal that although areas closely aligned with the president experience a boost in real...

This research examines the earnings management practices of growth versus value firms. We predict that growth firms have more incentive to 'manage their earnings' and that they do so more aggressively as compared to value firms. The primary reason for this behaviour is that information...

This paper examines the relationship between U.S. MNCs' valuation and corruption in countries where the MNCs' foreign subsidiaries are located. We uncover that country-level corruption has a multi-dimensional impact on MNCs' valuation. We find that the impact of intangibles is less pronounced...

Previous studies suggest that the market perceives IPOs as bad news (i.e., competitive threats) to existing firms in the same industry. At the same time, the market has a tendency to be overly optimistic about IPO prospects, especially during hot IPO markets. Thus, the negative industry rival...

We study the propensity of firms managed by foreign CEOs to make acquisitions in their CEOs’ countries of origin and analyze the consequences of such transactions. The analysis including 2,306 cross-border acquisitions by U.S. acquirers reveals the following: foreign-CEO-run firms are more...