Using a large sample of U.S. firms for the period from 1994 to 2009, we find that firms’ prior real earnings management (RM) is positively associated with their stock price crash. These results are robust to firm-fixed effects analysis, different crash likelihood measurements, and suspect-firm...

We study how the strength of country-level legal system affects firms’ use of real activities to manage earnings. Using absolute values of abnormal discretional expense and production cost, we find that the level of real earnings management is higher in countries with stronger legal system,...

Using Canadian-U.S. dollar data this paper examines the question of whether recent positive findings with regard to purchasing power parity carry over to the monetary approach to exchange rates. The evidence provides strong support for the long-run monetary model of exchange rates. At the same...

Studies document an unexplained wage gap between male and female workers even as female workers have increased their human capital through skill and education. At the executive level, where skill and education are similar, the results on gender-based pay gap persist and are primarily attributed...

We examine why some diversified firms trade at a discount and others at a premium. Specifically, we examine if the value premium (discount) of premium (discount) diversified firms can be explained by lower (higher) risk exposures and, hence, expected returns, relative to a portfolio of matching...

This paper, which is motivated by the literature on international asset pricing and recent work on exchange rate determination, investigates dynamic relationships between major currency and equity markets. Using a multivariate GARCH framework, we examine conditional cross-autocorrelations...