Since 2014, a number of U.S. states have legalized business activities related to the production, distribution, and use of recreational cannabis. These activities remain illegal at the U.S. federal level, creating a dual regulatory environment. The uncertainty related to the enforcement of...

We examine how suppliers' relationship-specific cost structure decisions affect future performance. We argue that suppliers can avoid risk by choosing more flexible cost structures (less fixed-to-variable costs) or commit resources by choosing more rigid cost structures (more fixed-to-variable...

Earnings announcements are clustered in calendar time and such clusters, referred to as earnings seasons, are characterized by intense arrival of information from firms in an industry. The news arrives not only from earnings announcement by the firm, announced news, but also from pre-emptive...

This study examines internal capital market inefficiencies and U.S. multinational firms' return of capital to shareholders. Using dividends and repurchases to measure the return of capital, we first document a difference in the relations between shareholder payouts and cash held either...

Prior studies document both an improvement and deterioration in the future operating performance of firms engaging in real earnings management (REM) to meet earnings benchmarks. These results suggest that some firms use REM to signal their favorable prospects, whereas others use REM...