This paper investigates whether employees in conjunction with their professional networks function as information intermediaries. Collectively, employees have access to value-relevant information that can be distributed through both their direct professional contacts and the contacts of their...

Directors' and Officers' (D&O) legal liability insurance is a common component of CEO compensation packages. We expect managers are more willing to engage in opportunistic behaviors when their personal assets are protected from litigation risk. Therefore, information about D&O policy details is...

Understanding the association between quasi-indexer ownership and insider trading is important given the externalities that insider trading can impose on shareholders, the importance of quasi-indexers in the capital markets, and their mixed monitoring incentives. The prior literature has...

We examine how ex ante financial distress risk affects CEO compensation. In order to disentangle the joint effects of performance on compensation and distress risk, we focus our analyses on new CEOs. Our results indicate financial distress risk affects compensation through two channels. First,...

Insider trading conveys insiders' private information to outsiders. This private information potentially benefits rival firms, which may reduce the competitive advantage of the insiders' firms. Using multiple approaches to identify proprietary information risk, we find proprietary costs are...

We provide evidence that increased reporting frequency enhances the extent to which stock prices guide managers' investment decisions. Using a generalized difference-in-differences research design, we find the sensitivity of investment to stock price increased for Mandatory Adopters following an...