With daily trades of directors' purchases and share repurchase we find that the former is preceded by larger share price drops and trigger a better short- and long-term market performance. Further, when directors purchase shares with their own wealth they time the market by buying shares at a...

As firms need to invest to build their social capital, we investigate the relationship between CSR reputation and firm investment. We find that social capital affects risk-shifting incentives: high CSR firms shift risk from shareholders to creditors. Also, firms facing a higher probability of...

Despite the importance of green innovation in fighting climate change, we find that green patent announcements do not have a positive effect on shareholder wealth. Even green patents that are granted to firms with a high climate risk exposure have no significant wealth impact. Similarly, neither...

In this paper, we analyze whether regulation reduced risk during the credit crisis and the sovereign debt crisis for a cross section of global banks. In this regard, we examine distance to default (Laeven and Levine, 2008), systemic risk (Acharya et al., 2010), idiosyncratic risk, and systematic...