Agency theory suggests that if a principal observes a signal suggesting that an agent has made a value-destroying decision, then the principal would be more likely to dismiss that agent. We label the increase in the pressure a manager feels to retain his job following an acquisition poorly...

We exploit an influential 1991 Delaware court ruling to examine simultaneously two types of conservatism that play important roles in resolving creditor-owner agency conflicts: contracting conservatism and reporting conservatism. The ruling expanded managerial fiduciary duties in favor of...

We exploit an influential 1991 Delaware court ruling to examine simultaneously two types of conservatism that play important roles in resolving creditor-owner agency conflicts: contracting conservatism and reporting conservatism. The ruling expanded managerial fiduciary duties in favor of...