We investigate the empirical relationship between macroeconomic risk, bank liquidity, and bank risk surrounding the 1999 Financial Services Modernization Act. We propose that bank risk and liquidity are positively related as macroeconomic risk increases, and that this effect is particularly...

This work examines the long-term stock performance of asset purchases and its major determinants by evaluating cross-sectional differences. The findings show that buyers’ stocks, on average, underperform their benchmarks following purchases. The buy-and-hold abnormal returns of buyers...

In this paper, we empirically investigate how staggered boards, a prevailing governance structure of high-tech firms, influence firms’ product innovations in the United States. We explore a quasi-natural experiment of a legislation change in Massachusetts that forced the adoption of staggered...

We examine how firms react to their competitors' highly publicized technology breakthroughs measured by the renowned R&D 100 Award. These awards have been granted to top 100 technological inventions every year since 1965 and have come to be known as the “Oscar of Invention” (e.g., Verhoeven,...

This paper investigates whether firms' pollution records influence their financing costs. Evidence shows that lending banks demand significantly higher loan spreads, higher total borrowing costs, shorter loan maturities, smaller loan sizes, and greater collateral from firms with higher levels of...

We examine the relation between family presence and corporate investment policy. Our analysis centers on two incentives that potentially lead to differences in investment policy between family firms and nonfamily firms: family owners' risk aversion and their real option to invest. Our findings...

This study investigates the relationship between managerial optimism, investment efficiency, and firm valuation. This study follows the Campbell's measurement for managerial optimism and investigates the influences of the different levels of managerial optimism on improving investment efficiency...