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On the Use of Instrumental Variables in Accounting Research
Instrumental variable (IV) methods are commonly used in accounting research (e.g., earnings management, corporate governance, executive compensation, and disclosure research) when the regressorExpand
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Does Weak Governance Cause Weak Stock Returns? An Examination of Firm Operating Performance and Investors' Expectations
We investigate Gompers, Ishii, and Metrick's (2003) finding that firms with weak shareholder rights exhibit significant stock market underperformance. If the relation between poor governance and poorExpand
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Implications of Transaction Costs for the Post-Earnings Announcement Drift
ABSTRACT This paper examines the effect of transaction costs on the post-earnings announcement drift (PEAD). Using standard market microstructure features we show that transaction costs constrain theExpand
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Stock option grant vesting terms: economic and financial reporting determinants
Option grant vesting terms are a contractual provision that is shaped by accounting standards and other economic factors. We examine the effect of accounting standards, specifically SFAS 123(R), onExpand
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Bank Competition and Financial Stability: Evidence from the Financial Crisis
We examine the link between bank competition and financial stability using the recent financial crisis as the setting. We utilize variation in banking competition at the state level and find thatExpand
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Executive severance agreements
This paper studies severance agreements and their relation with CEO turnover. Severance agreements provide an interesting exception to the pay-for-performance paradigm. Not only do executives getExpand
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Endogeneity and Empirical Accounting Research
Abstract The discussion reinforces and expands on some of the fundamental issues about endogeneity raised by Chenhall and Moers (European Accounting Review, this issue, pp. 173–195). We focus on theExpand
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Market Inefficiency and Implied Cost of Capital Models
In this paper, I examine the impact of market inefficiency on the properties of implied cost of capital (ICC) estimates. I show that market inefficiency will bias the relation between the ICCExpand
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Spillover Effects of Peer-to-Peer Lending on the Loan Losses of Commercial Banks
Financial technology (FinTech) companies are increasingly important in the financial system. We investigate the effect of peer-to-peer (P2P) lending on traditional banks’ loan losses by examiningExpand