This research is the first to examine the empirical predictions of a real option-pricing model using a large sample of data on mergers and acquisitions in the European banking industry. We find empirical support for a model that estimates the value of an option to wait in accepting an initial...

This paper provides highly significant evidence that golden parachutes spur innovation in concentrated-ownership corporations and State-Owned-Enterprises (SOEs). Taking advantage of China's institutional features, we find that golden parachutes lead to higher levels of innovation quantity and...

This paper finds statistically significant evidence that adopting Director Nomination Eligibility Criteria (DNEC) mitigates stock price crash risk. We hand-collect whether a firm adopts DNEC or not from thousands of Chinese corporate charters and measure its impact on stock price crash risk over...

This study investigates the intra-industry effects of environmental and social (ES) scandals in China. We find that, on average, rivals experience a significant decline in stock prices during the scandal announcements. Further, with a novel and comprehensive dataset, we document a significant...

This paper discusses the role of the credit rating agencies during the recent financial crises. In particular, it examines whether the agencies can add to the dynamics of emerging market crises. Academics and investors often argue that sovereign credit ratings are responsible for pronounced...

This chapter analyzes the risk and return characteristics of investments in artists from the Middle East and Northern Africa (MENA) region over the sample period 2000 to 2012. With hedonic regression modeling we create an annual index that is based on 3,544 paintings created by 663 MENA artists....