SYNOPSIS I examine Sarbanes-Oxley's (SOX) effect on capital structure. I find that SOX is associated with higher long-term debt ratios, as firms listed in the U.S. raise their long-term debt ratios by 2 to 3 percentage points. This finding is consistent with the idea that, although the reduction in information asymmetry associated with SOX could prompt managers to increase equity financing, debt is still safer and less costly than equity in the SOX era. Further analysis shows that the increase in debt occurs in the two quarters prior to SOX, suggesting that firms anticipate a higher cost of debt after SOX and acquire debt while it is relatively cheap. Also, firms that heavily (lightly) manage earnings prior to SOX use less (more) debt after SOX. This result is consistent with the view that firms that aggressively manage earnings before SOX reveal intrinsically weaker earnings after SOX, casting doubt on those firms' ability to repay debt and relegating those firms to issue equity for financing purposes. JEL Classifications: G32; G38. Data Availability: Data available upon request.

Using data from the National Collegiate Athletic Association Men's Basketball Tournament, I examine the impact of travel on team production in a setting where one team is geographically closer than its opponent to a neutral site. I hypothesize and find that the closer team, or relative home team, has a relative home‐court advantage that helps it to out‐produce its opponent. When the relative home team travels a much shorter distance than its opponent to a neutral site, binary logistic and ordinary least squares regressions indicate a positive relationship between relative home‐court advantage and, respectfully, winning and margin of victory. Copyright © 2015 John Wiley & Sons, Ltd.

Although eye tracking has been used extensively to assess cognitions for static stimuli, recent research suggests that the link between gaze and cognition may be more tenuous for dynamic stimuli such as videos. Part of the difficulty in convincingly linking gaze with cognition is that in dynamic stimuli, gaze position is strongly influenced by exogenous cues such as object motion. However, tests of the gaze‐cognition link in dynamic stimuli have been done on only a limited range of stimuli often characterized by highly organized motion. Also, analyses of cognitive contrasts between participants have been mostly been limited to categorical contrasts among small numbers of participants that may have limited the power to observe more subtle influences. We, therefore, tested for cognitive influences on gaze for screen‐captured instructional videos, the contents of which participants were tested on. Between‐participant scanpath similarity predicted between‐participant similarity in responses on test questions, but with imperfect consistency across videos. We also observed that basic gaze parameters and measures of attention to centers of interest only inconsistently predicted learning, and that correlations between gaze and centers of interest defined by other‐participant gaze and cursor movement did not predict learning. It, therefore, appears that the search for eye movement indices of cognition during dynamic naturalistic stimuli may be fruitful, but we also agree that the tyranny of dynamic stimuli is real, and that links between eye movements and cognition are highly dependent on task and stimulus properties.

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