We analyze whether tough IRS monitoring generates a positive externality by constraining managers' bad news hoarding activities. Supporting this prediction, we find a negative relation between the threat of an IRS audit and stock price crash risk. Our evidence is consistent with recent theory...

Exploiting mergers between lenders and shareholders of the same firm as an exogenous shock to dual ownership, we examine the role that dual holdings (i.e., simultaneous equity and debt holding) play in shaping firms’ ex ante expected stock price crash risk evident in the options implied...

This paper documents a positive relation between internationalization and bank risk. This is consistent with the empirical dominance of the market risk hypothesis – whereby internationalization increases banks' risk due to market-specific factors in foreign markets – over the diversification...