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We use text analytic methods on the universe of 10-K filings on the Securities and Exchange Commission's (SEC) Edgar website to construct measures of the extent to which publicly traded U.S. firms are exposed to three types of offshore activities: the sale of output, the purchase of input, and the ownership of assets that produce input. We then examine if… (More)
We examine the impact of outsourcing supply contracts on firm risk and firm capital structure. We find that firm outsourcing is associated with less risky firm cash flows. Despite these less risky cash flows, our results show that outsourcing firms use less financial leverage – in particular during the recent financial crisis. We show that the effect of… (More)
We examine the impact of outside purchase contracts on firm risk and firm capital structure. We find that firms with more outside purchase contracts have less risky cash flows. Despite these less risky cash flows, firms with these contracts also have less financial leverage especially when they operate in high value-added industries. Examining firm… (More)