We examine the financial performance that boards of large U.S. firms realize by their decision to hire a new CEO from within the firm versus externally. Using a structural self-selection modeling approach, we find, for boards that promote internally, greater total cash flows than would have been...

We investigate the association between financial performance and CEO hiring source: internal promotion or external firm. This analysis includes all U.S. CEOs in established public firms from 1986 to 2005. The results show that in large firms, internal hires provide significantly higher median...

We explore whether clawback provisions (i.e. Dodd-Frank and SOX) can mitigate agency problems by deterring the executives from manipulating earnings in an effort to boost their incentive compensation. We estimate the direct and indirect gains executives receive as a result of manipulating...

We investigate the role of social capital and cultural biases in investment by foreign high-tech firms in China. We find social capital of provinces in the host country, social capital of the foreign company's home country, and the cultural difference between the two countries are important...

Investment by foreign firms in a host country is a good setting to study the two concepts in social psychology: cultural biases among foreign companies, and social capital among regions in the host country. We choose to investigate investment by foreign high tech firms in China. We find both...

The weight of individual charitable contribution in the total contribution has decreased significantly since 1979. The fraction of household income spent on cash contribution has also declined during the same period. We examine the factors behind these trends. We find that stock market return,...

Does social trust restrain or exacerbate opportunistic behaviors of corporate insiders? On the one hand, insiders who are susceptible to a high trust environment surrounding them will be less opportunistic; on the other hand, unethical insiders may exploit high trust people to engage in more...