Showing 21 - 30 of 1,454
This paper presents a market equilibrium model of CEO assignment, pay and incentives under risk aversion and heterogeneous moral hazard. Each of the three outcomes can be summarized by a single closed-form equation. In assignment models without moral hazard, allocation depends only on firm size...
Persistent link: https://www.econbiz.de/10012462666
Outside directors have incentives to resign to protect their reputation or to avoid an increase in their workload when they anticipate that the firm on whose board they sit will perform poorly or disclose adverse news. We call these incentives the dark side of outside directors. We find strong...
Persistent link: https://www.econbiz.de/10012462735
We study the characteristics and abilities of CEO candidates for companies involved in buyout (LBO) and venture capital (VC) transactions and relate them to hiring decisions, investment decisions, and company performance. Candidates are assessed on more than thirty individual abilities. The...
Persistent link: https://www.econbiz.de/10012464452
We examine the relationship between wages and skill requirements in a sample of over 50,000 managers in 39 companies …
Persistent link: https://www.econbiz.de/10012471020
This paper develops a novel method to identify the causal contribution of managers to team performance. The method … requires repeated random assignment of managers to multiple teams and controls for individuals' skills. A good manager is … someone who consistently causes their team to produce more than the sum of their parts. Good managers have roughly twice the …
Persistent link: https://www.econbiz.de/10014635662
We show better-managed firms are more dynamic in plant acquisitions, disposals, openings and closings in U.S. Census and international data. Better-managed firms also birth better-managed plants and improve the performance of the plants they acquire. To explain these findings we build a model...
Persistent link: https://www.econbiz.de/10015409796
In this paper we explore cross-sectional differences in the behavior and performance of mutual fund managers. In our … simplest regression of a fund's market excess return on characteristics of its manager we find that younger managers earn much … higher returns than older managers and that managers who attended colleges with higher average SAT scores earn much higher …
Persistent link: https://www.econbiz.de/10012472976
This paper examines the effect of the benefits of corporate control to managers on the relationship between managerial … the acquiring firm increases, the interests of managers are more closely aligned with those of shareholders, reducing the … acquisition premium. At sufficiently high levels of managerial ownership, managers value a reduction in the risk of their …
Persistent link: https://www.econbiz.de/10012473808
Systemic risk is commonly used to describe the possibility of a series of correlated defaults among financial institutions---typically banks---that occur over a short period of time, often caused by a single major event. However, since the collapse of Long Term Capital Management in 1998, it has...
Persistent link: https://www.econbiz.de/10012467485
This paper studies how hedge fund activism reshapes corporate innovation. Firms targeted by hedge fund activists experience an improvement in innovation efficiency during the five-year period following the intervention. Despite a tightening in R&D expenditures, target firms experience increases...
Persistent link: https://www.econbiz.de/10012456402