This paper provides novel evidence that consumers react in response to privacy violations, where their personally identifiable information is exposed to unauthorized parties. Exploring privacy breach incidences of U.S. banks, we find that depositors reallocate significant wealth holdings away...

In this paper, we examine the effect of passive institutional investors on firms' earnings quality by exploiting the variation in passive ownership around Russell 1000/2000 index cutoff. To get a comprehensive understanding, we use four sets of earnings quality proxies- properties of earnings,...

Extant literature focuses on the governance effect of hedge fund activism on shareholders but overlooks other stakeholders. We fill this literature gap by investigating one important stakeholder who also plays a governance role: the auditor. We find that the governance effect of hedge fund...

We examine firms' tax avoidance behavior in response to external investor inattention. We argue that reduced investor attention raises incentivized managers' needs to maintain firm growth and sustain financial resources, leading to more tax avoidance. We exploit a unique setting where peer firms...

We investigate economic consequences of going-concern opinions in terms of corporate control, executive compensation and management turnover. We argue that announcement of going-concern opinions either decreases firm value or signals negatively to investors. Therefore, upon the announcement of...

Drawing on the theoretical and empirical evidence that private information risk is priced in the expected returns of equities, we hypothesize that information risk premium is an important component of the risk premium that leads to the violation of uncovered interest rate parity (UIRP). Using an...