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...

Prior research documents that information transmitted via director networks affects firms' policies and real economic activities. We explore whether information flow through director networks influences managers' ability to hoard bad news. We find that the extent of external connections of the...

We examine whether the equity incentive heterogeneity of the executive team engenders a positive externality by curtailing stock price crash risk. Supporting this prediction, we find a negative relation between the equity incentive heterogeneity of the executive team and stock price crash risk....

Prior research documents that information transmitted via director networks affects firms’ policies and real economic activities. Given a manager’s potential monopoly over firm information, it is important to analyze whether information transmission through director social networks...

We examine the association between CEOs' political ideologies, proxied by CEOs' federal-level personal political contributions to the Republican Party relative to the Democratic Party, and audit fees of the firms that the CEOs manage. We hypothesize and find that firms run by CEOs whose...