Does government contracting translate to better earnings quality and less earnings management? In this study, we seek to answer this question. We find strong evidence that government suppliers strategically substitute accrual-based earnings management with real earnings management. Firms with...

We examine the impact of corporate diversification on firm risk exposure from 1998 to 2016. We find that both global and industrial diversification mitigate idiosyncratic and world market risk while having a negligible impact on U.S. market risk, but the effects vary before, during, and after...

We study the link between institutional ownership stability and dividend payout ratio. We find that stable and large institutional owners favour dividend paying companies. There also exists a positive association between ownership persistence and dividend payout. Conversely, firms that change...

This research investigates the relationship between government economic policy uncertainty (EPU) and trade credit and its value implication for U.S. public firms. We find that firms curtail their receivables periods and face shorter payables periods from suppliers during high EPU. The impact of...

We document significantly lower valuations for government contractors in the United States. While contracting with government agencies reduces firms' cost of equity, it significantly lowers their sales growth. These findings are contingent on economic conditions; negative valuations dissipate as...

This study evaluates the effect of the Capital Purchase Program during the 2008-2009 financial crisis on the cost of equity of 170 publicly listed banks in the United States that received funding. We document robust evidence that the liquidity provided by the government bailout reduced the cost...