Evidence from hedging practices suggests that firms will only hedge if they expect unfavorable events to arise. Stulz (1990) argues that selective hedging will only enhance value when the firm has an information advantage over the market, which enables the firm to foresee price movements. In...

We examine the impact of managerial incentives on acquisitions in the banking industry. We find that banks whose CEOs have higher pay-for-performance sensitivity (PPS) are less likely to engage in value-reducing acquisitions. Conditional on engaging in acquisitions, those higher-PPS banks have...

This paper investigates whether borrowers' supply chain relationships affect banks' lending decisions. These relationships benefit firms by reducing the information gap with banks, which increases the access to capital, while reducing the cost of the loan. However, banks demand increased...

We employ a cross-country sample to examine whether cultural differences help explain gender compensation variations across corporate executives. The results show that the cultural differences, which are embedded in societies from long prior to the compensation decisions, provide significant...

This study investigates the value-relevant implications of the target firm’s annual report readability for acquiring firms. We find robust evidence that readability has a positive association with bidder market reaction and bid premiums, as well as a negative association with the time to...

We employ a cross-country sample to examine whether cultural differences help explain gender compensation variations across corporate executives. The results show that the cultural differences, which are embedded in societies from long prior to the compensation decisions, provide significant...