The DOI matches its Crossref record; 80 of the 80 references it cites were found in a registry or an index.
Growing Out of Trouble? Corporate Responses to Liability Risk
Open accessAbstract
This article analyzes corporate responses to the liability risk arising from workers' exposure to newly identified carcinogens. We find that firms, especially those with weak balance sheets, tend to respond to such risks by acquiring large, unrelated businesses with relatively high operating cash flows. The diversifying growth appears to be primarily motivated by managers' personal exposure to their firms' risk in that the growth has negative announcement returns and is related to firms' external governance, managerial stockholdings, and institutional ownership. The results suggest that corporate governance is particularly important when firms are exposed to the risk of large, adverse shocks.
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“For example, each alternative estimator ensures that firms receiving treatment are not compared to those that previously received it.”
From How Much Should We Trust Staggered Difference-in-Differences Estimates? (2022) · cites this paper as Gormley and Matsa, 2011
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From How Much Should We Trust Staggered Difference-in-Differences Estimates? (2022) · cites this paper as Gormley and Matsa, 2011
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“An alternative approach developed by applied researchers for circumventing the issues with TWFE DiD estimators is a “stacked regression” (see, e.g., Gormley and Matsa, 2011; Cengiz et al., 2019; Deshpande and Li, 2019 ).”
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Cites
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How Much Should We Trust Staggered Difference-in-Differences Estimates?
Baker, A. C., Larcker, D. F., & Wang, C. C. Y. (2022) · Journal of Financial Economics · doi:10.1016/j.jfineco.2022.01.004 · Cited by 3,149
Environmental externalities and cost of capital
Chava, S. (2014) · Management Science · doi:10.1287/mnsc.2013.1863 · Cited by 1,851
Endogeneity in Empirical Corporate Finance1
Roberts, M. R., & Whited, T. M. (2013) · Handbook of the Economics of Finance · doi:10.1016/b978-0-44-453594-8.00007-0 · Cited by 2,459
How Much Should We Trust Staggered Difference-In-Differences Estimates?Preprint
Baker, A., Larcker, D. F., & Wang, C. C. Y. (2021) · SSRN Electronic Journal · doi:10.2139/ssrn.3794018 · Cited by 670
The Effects of Mandatory ESG Disclosure Around the World
Krueger, P., Sautner, Z., Tang, D. Y., & Zhong, R. (2021) · Journal of Accounting Research · doi:10.1111/1475-679x.12548 · Cited by 830
Metadata
- Authors
- Gormley, T. A., & Matsa, D. A.
- Affiliations
- Washington University in St. Louis (US)
- Northwestern University (US)
- ORCID
- Gormley, Todd A.
- Venue
- Review of Financial Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 2011-04-11
- Volume
- 24
- Issue
- 8
- Pages
- 2781-2821
- ISSN
- 0893-9454 (ISSN-L)
- 1465-7368
- OpenAlex
- W2137816507
- Cited by
- 690
- References
- 75
- Citations by year
- 2026: 90 · 2025: 136 · 2024: 113 · 2023: 70 · 2022: 56 · 2021: 59 · 2020: 39 · 2019: 21 · 2018: 27 · 2017: 24 · 2016: 19 · 2015: 10 · 2014: 7 · 2013: 13 · 2012: 4
- FWCI
- 28.37
- Type
- journal article
- Language
- en
- Open access
- green
- repository.upenn.edu
- Locations
- Review of Financial Studies (publishedVersion)
- ScholarlyCommons (University of Pennsylvania) (submittedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Finance › Corporate Finance and Governance
- Social Sciences › Business, Management and Accounting › Accounting › Auditing, Earnings Management, Governance
- Social Sciences › Business, Management and Accounting › Accounting › Risk Management in Financial Firms
- Keywords
- liability risk, carcinogens, business diversification, unrelated acquisitions, corporate governance, institutional ownership, operating cash flow, balance sheet strength, adverse shocks
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