报告：Contracting in a Short-Term Relationship: Evidence from Asset Sales Agreements
摘要：Using a large sample of asset sales agreements compiled from SEC filings, I examine the use of contracting mechanisms in a short-term business relationship. I first show that higher information asymmetry between buyers and sellers is associated with the use of more representations and warranties, covenants, and special payment arrangements. Importantly, my result suggests that these contracting mechanisms are used as complements to one another. Further analysis shows that this complementarity is more pronounced when agency conflicts become more severe. These results differ from prior findings on long-term contracts that different mechanisms usually serve as substitutes. The evidence is consistent with the view that the length of a relationship influences contract efficiency in employing multiple mechanisms—while in a long-term relationship, contracts tend to rely on few provisions, short-term contracts depend more on multiple mechanisms.
报告：Employee Cognitive Skills and Management Forecasts
摘要：Our study examines the association between employee cognitive skills and the issuance of management forecasts. Using information from online postings of professional jobs, we measure employers’ requirements for cognitive skills from their employees and find that cognitive skill requirements are positively associated with both the likelihood and frequency of management forecast issuance. This association is more pronounced for firms operating in a more complex and uncertain business environment, and holds for specific types of management forecasts including earnings, sales, and capital expenditure forecasts. These results suggest that employee cognitive skills can improve the quality of internal information supplied to top executives for decision making, allowing them to better project future operation outcomes.