In an extended Capital Asset Pricing Model setting, I examine how the quality of accounting standards affects real investment and welfare through its impact on investment hurdle rates. In this model, cash flow uncertainty arises from two fundamental sources relating, respectively, to economic...

PurposeThe authors examine the joint effect of the country-wide legal institutions and product market competition on stock crash risk in a large sample of international firms.Design/methodology/approachIn the study, the authors examine whether the country-level institutional factors affect...