We examine how government ownership affects the top management team's (TMT) pay dispersion and how such TMT pay dispersion affects subsequent firm performance. We test three competing views on the influences of government ownership, referred to as the agency view, the equity view, and the...

This is the first comprehensive study of mutual fund voting in proxy contests. Mutual funds tend to vote for dissident nominees at firms with weak operating and financial performance, and when dissidents are hedge funds. Notably, passive funds are more likely to support incumbent management than...

In this study, we examine the association between supplier concentration and cost flexibility and how such association varies with the buyer firm's bargaining power and the nature of buyer-supplier relationship. Drawing on prior literature, we predict that there is a positive association between...

An important milestone often reached in the life of an activist engagement is entering into a “settlement” agreement between the activist and the target's board. Using a comprehensive hand-collected data set, we analyze the drivers, nature, and consequences of such settlement agreements....

An important milestone often reached in the life of an activist engagement is entering into a “settlement” agreement between the activist and the target's board. Using a comprehensive hand-collected data set, we analyze the drivers, nature, and consequences of such settlement agreements....

This study analyzes the motives for and consequences of funds' credit default swap (CDS) investments using mutual funds' quarterly holdings from pre- to post-financial crisis. Funds resort to CDS investment when facing unpredictable liquidity needs. Funds sell more in reference entities where...

Using U.S. and China establishment-level data, this paper studies the dynamic interdependence in industrial activities between the U.S. and China. In a VAR framework, high birth rates of Chinese firms predict same-industry firm exits and lowered employment in the U.S., particularly in the...

This paper provides a comprehensive analysis of a new and increasingly important phenomenon: the simultaneous holding of both equity and debt claims of the same company by non-bank institutional investors (quot;dual holdersquot;). The presence of dual holders offers a unique opportunity to...

Records of more than half a million participants in more than six hundred 401(k) pension plans indicate that participants tend to use a small number of funds: The number of participants using a given number of funds peaks at three funds and declines with the number of funds for more than three...

This paper provides empirical evidence on factors affecting analysts' weighting of private and public information when they forecast firm earnings. We examine the relevance of competing explanations for the deviations of analysts' actual weighting from their efficient weighting (i.e., the...