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Executive compensation and stock options : an inconvenient truth

Danthine, Jean-Pierre; Donaldson, John B. - 2008

to be incompatible with the fact that the bulk of many high-proffile managers' compensation is in the form of various …

Persistent link: https://www.econbiz.de/10003961700

Director independence as strategic behavior

Wagner, Alexander F. (contributor) - 2007

This paper analyzes board independence and competence as distinct, but inextricably linked aspects of board effectiveness. Competent directors add shareholder value because they have better information about the quality of projects. While a CEO cares about shareholder value, he also wants his...

Persistent link: https://www.econbiz.de/10003550804

Executive compensation : the view from general equilibrium

Danthine, Jean-Pierre (contributor); … - 2007

firm to risk averse managers. The optimal contract has two main components: an incentive component corresponding to a non … and that maximizing the discounted sum of future dividends will be her objective. Linking managers' compensation to … overall economic performance is also required to make sure that managers use the appropriate stochastic discount factor to …

Persistent link: https://www.econbiz.de/10003550864

Bank CEO incentives and the credit crisis

Fahlenbrach, Rüdiger; Stulz, René M. - 2009

We investigate whether bank performance during the recent credit crisis is related to chief executive officer (CEO) incentives before the crisis. We find some evidence that banks with CEOs whose incentives were better aligned with the interests of shareholders performed worse and no evidence...

Persistent link: https://www.econbiz.de/10003970468

Former CEO directors : lingering CEOs or valuable resources?

Fahlenbrach, Rüdiger; Minton, Bernadette A.; Pan, Carrie H. - 2010

We investigate corporate governance experts' claim that it is detrimental to a firm to reappoint former CEOs as directors after they step down as CEOs. We find that more successful and more powerful former CEOs are more likely to be reappointed to the board multiple times after they step down as...

Persistent link: https://www.econbiz.de/10003979500

The dark side of outside directors : do they quit when they are most needed?

Fahlenbrach, Rüdiger; Low, Angie; Stulz, René M. - 2010

Following surprise independent director departures, affected firms have worse stock and operating performance, are more likely to restate earnings, face shareholder litigation, suffer from an extreme negative return event, and make worse mergers and acquisitions. The announcement returns to...

Persistent link: https://www.econbiz.de/10003979510

Risk-taking incentives, governance, and losses in the financial crisis

Chesney, Marc; Stromberg, Jacob; Wagner, Alexander F. - 2010

("asset incentives"). This is because leverage, while central to the theory of risk shifting, is not explicitly considered by …

Persistent link: https://www.econbiz.de/10003979511

Investors' expectations, management fees and the underperformance of mutual funds

Huesler, Andreas D.; Malevergne, Yannick; Sornette, Didier - 2012

Why do investors keep buying underperforming mutual funds? To address this issue, we develop a one-period principal-agent model with a representative investor and a fund manager in an asymmetric information framework. This model shows that the investors perception of the fund plays the key role...

Persistent link: https://www.econbiz.de/10009561613

Tips and tells from managers : how analysts and the market read between the lines of conference calls

Druz, Marina; Wagner, Alexander F.; Zeckhauser, Richard - 2015

The negativity of managerial word choice (managerial tone) on conference calls is a telltale indicator of a company's future. Specifically, increases in negativity, what we term bleak tone changes, strongly predict lower future earnings and greater uncertainty. However, decreases in negativity...

Persistent link: https://www.econbiz.de/10011293487

Why are firms with more managerial ownership worth less?

Fabisik, Kornelia; Fahlenbrach, Rüdiger; Stulz, René M.; … - 2018

Persistent link: https://www.econbiz.de/10011976932