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Trust in Public Institutions over the Business Cycle

Stevenson, Betsey; Wolfers, Justin - CESifo - 2011

the most suffered the biggest loss in confidence in institutions, particularly in trust in government and the financial …We document that trust in public institutions—and particularly trust in banks, business and government—has declined … over recent years. U.S. time series evidence suggests that this partly reflects the pro-cyclical nature of trust in …

Persistent link: https://www.econbiz.de/10008872215

What is the Relation (if any) Between a Firm's Corporate Governance Arrangements and its Financial Performance?

Wessels, Roberto E.; Wansbeek, Tom J.; Dam, Lammertjan - CESifo - 2014

We present a model to test the null hypothesis that firms organize their corporate governancearrangements optimally given the constraints they face. Following the literature, the modelrejects the null if the conditional correlation between governance and performance issignificantly different...

Persistent link: https://www.econbiz.de/10011249564

What Explains the Rise in CEO Pay in Germany? A Panel Data Analysis for 1977-2009

Fabbri, Francesca; Marin, Dalia - CESifo - 2012

The compensation of executive board members in Germany has become a highly controversial topic since Vodafone’s hostile takeover of Mannesmann in 2000 and it is again in the spotlight since the outbreak of the financial crisis of 2009. Based on unique panel data evidence of the 500 largest...

Persistent link: https://www.econbiz.de/10009653374

Optimal Delegation when the Large Shareholder has Multiple Tasks

Graziano, Clara; Luporini, Annalisa - CESifo - 2010

We analyze the optimal ownership, delegation and compensation structures when a manager is hired to run a firm and to gather information on investment projects. The initial owner has two tasks: monitoring the manager and supervising project choice. Optimality would require a large ownership...

Persistent link: https://www.econbiz.de/10008596583

Corporate Deductibility Provisions and Managerial Incentives

Köthenbürger, Marko; Stimmelmayr, Michael - CESifo - 2013

earnings or new share issues finance investments at the margin. The results are informative for the design of investment …

Persistent link: https://www.econbiz.de/10010732350

A Revealed Preference Approach to Understanding Corporate Governance Problems: Evidence from Canada

Chirinko, Robert S.; Schaller, Huntley - CESifo - 2002

By studying the gap between the discount rates used by executives and shareholders, we assess the extent to which governance problems distort firm behavior. The estimation strategy recovers discount rates used by executives from the pattern of their actual investment spending. Our empirical work...

Persistent link: https://www.econbiz.de/10005765749

Ownership Concentration, Monitoring and Optimal Board Structure

Graziano, Clara; Luporini, Annalisa - CESifo - 2005

The paper analyzes the optimal structure of the board of directors in a firm with a large shareholder sitting on the board. In a one-tier structure the sole board performs all tasks, while in a two-tier structure the management board is in charge of project selection and the supervisory board is...

Persistent link: https://www.econbiz.de/10005765820

The Positive Economics of Labor Market Rigidities and Investor Protection

Fehn, Rainer; Meier, Carsten-Patrick - CESifo - 2001

This paper presents a positive model which shows that institutional setups on capital and labor markets might be intertwined by politicoeconomic forces. Some countries especially in continental Europe exhibit a corporatist politicoeconomic equilibrium with a substantial protection of insiders on...

Persistent link: https://www.econbiz.de/10005766256

Managerial Hedging and Portfolio Monitoring

Bisin, Alberto; Gottardi, Piero; Rampini, Adriano A. - CESifo - 2004

Incentive compensation induces correlation between the portfolio of managers and the cash flow of the firms they manage. This correlation exposes managers to risk and hence gives them an incentive to hedge against the poor performance of their firms. We study the agency problem between...

Persistent link: https://www.econbiz.de/10005094243

Diversification and Ownership Concentration

Parigi, Bruno Maria; Pelizzon, Loriana - CESifo - 2005

is poor, asset return correlation affects ownership structure in a positive way. Higher return correlation lowers the … benefits of diversification which causes a higher investment by the controlling shareholder in his asset and a lower investment …

Persistent link: https://www.econbiz.de/10005181426