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...

In 2007 and 2008, Sovereign Wealth Funds (SWFs), mostly from Asia and the Middle East, invested billions of dollars in the stocks of major US financial institutions, but prior to these investments, SWFs were relatively unknown in the US. Following major investments by SWFs in the US stock...

We examine real activities manipulation by firms prior to their debt issuances and how such manipulation activities affect bond yield spreads. We find that bond-issuing firms increase their real activities manipulation in the five quarters leading to a bond issuance. We document an inverse...

This study examines the impact of institutional investors' equity ownership stability and their investment horizon to determine the impact on their investee firms' equity mispricing. We treat institutional investors as a heterogenous group, i.e., dedicated, transient, or quasi-indexer as defined...

We examine the relationship between various measures of institutional ownership and investee firms' level of innovation as measured by the number of patents and patent citations. We find a direct association between the stability in the equity ownership of institutional investors and their...

We examine the relationship between institutional ownership stability and real earnings management. Our findings indicate that firms held by more stable institutional owners experience lower real activities manipulation by limiting overproduction. We further examine how the stability in the...

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...