We examine the impact of county-level religiosity on labor investment decisions. Specifically, we examine the effect of county-level religiosity on labor investment inefficiency. Drawing on the social norm theory, we hypothesize that firms located in religious counties do not engage in...

Firm fixed effects alone explain as much of the variation in acquirer returns as all the firm- and deal-specific characteristics combined. An interquartile range of acquirer fixed effects is over 6%, comparable to the interquartile range of acquirer returns. Acquirer returns persist over time,...

This article examines the influence of investor knowledge and the cognitive bias which arises from overconfidence on the advice seeking behaviour of investors managing their own retirement funds. Specifically, we trace whether overestimating one's own technical and financial abilities can hinder...

The paper shows that variables commonly used in takeover prediction models also help to explain the likelihood of several other restructuring events, including divestitures, bankruptcies and significant employee layoffs. This finding helps to explain the larger misclassification errors in...

We examine the pricing and performance of advisers in Mamp;A transactions. We determine adviser quality on the basis of a contemporaneous market share measure and show that high quality advisers receive higher Mamp;A advisory fees. High quality advisers also complete deals faster, but their...

This paper examines the interaction effects of restructuring activities for a sample of Australian firms experiencing significant declines in operating performance. Our sample firms respond to performance shocks with both financial and corporate restructuring and they achieve significant...

The paper examines the role of M&A advisors in propagating takeover activity following economic shocks. We posit that M&A advisors play a significant role in promoting aggregate merger activity in the wake of an industry shock. The empirical results support this proposition by demonstrating a...

We examine the effect of corporate violations on bank loan contracting and document that borrowers with higher corporate violation penalties have higher loan costs. Higher corporate violations are also associated with more restrictive covenants and higher likelihood of collateral requirements....