This dissertation is comprised of three articles. The first article examines the importance of capital market imperfections by investigating the dependence of a firm's investment on its internal resources. I exploit the tax loss carryforward feature of the tax code to establish that corporate...

This dissertation addresses issues in corporate finance. Part I examines the litigationenvironment of a firm and its impact on financial policy. Chapter 1 discusses prior research,including theory and empirical results, related to firm performance, financial policy, andlitigation. It provides...