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Explaining the Diversification Discount
Diversified firms trade at a discount relative to similar single-segment firms. We argue in this paper that this observed discount is not per se evidence that diversification destroys value. Firms
The Impact of Performance-based Compensation on Misreporting
This paper examines the effect of CEO compensation contracts on misreporting. We find that the sensitivity of the CEO's option portfolio to stock price is significantly positively related to the
Do the SEC’s Enforcement Preferences Affect Corporate Misconduct?
Recent frauds have questioned the efficacy of the SEC's enforcement program. We hypothesize that differences in firms' information sets about SEC enforcement and constraints facing the SEC affect
Neighborhood Matters: The Impact of Location on Broad Based Stock Option Plans
We find that fixed effects related to the location of firms' headquarters explain variation in broad based option grants after controlling for industry effects and firm characteristics traditionally
Institutional ownership and monitoring: Evidence from financial misreporting
We find that the likelihood and severity of financial misreporting is positively related to aggregate institutional ownership and this effect can be largely attributed to ownership by institutions
Geography and Acquirer Returns
We examine the impact of geographical proximity on the acquisition decisions of US public firms over the period 1990-2003. Transactions where the acquirer and target firms are located within 100km of
The Economics of Fraudulent Accounting
We argue that earnings management and fraudulent accounting have important economic consequences. In a model where the costs of earnings management are endogenous, we show that in equilibrium, bad
Estimating product market competition: Methodology and application
Abstract In oligopolies, firms behave strategically and commit to actions that elicit favorable responses from rivals. Firm actions consequently are a function of the nature of these strategic
Performance Impact of Employee Stock Options
In a sample of 200 large Nasdaq firms we examine the determinants of stock option grants and study whether options are associated with superior firm performance. We find that firms grant options in
Foreign currency - Denominated debt: An empirical examination
We examine the determinants of debt issuance in 10 major currencies by large U.S. firms. Using the fraction of foreign subsidiaries and tests exploiting the disaggregated nature of our data, we find