This paper develops a two-way director-firm fixed effect model to study the relationship between independent directors' individual heterogeneity and firm operating performance, using French data. This strategy allows considering and differentiating in a unified empirical framework mechanisms...

The labour market's ability to adjust to the current demographic shock is a central concern for labour market policies. An aging population could affect the economy's ability to adjust, not only to the aging population shock itself, but also to those associated with the business cycle,...

We test the simple wealth maximization theory of quitting behavior on the German Socioeconomic Panel (1985-1993). We develop a new methodology to extract a consistent estimate of how the expected present value of one's job (including the non-pecuniary component) compares with outside...

This paper provides evidence that workers' compensation (WC) and unemployment insurance (UI)could affect not only the occurence of workplace accident claims, but also the composition of these reported accidents. Our theoretical framework predicts that, under plausible assumptions, an increase in...

By reporting his satisfaction with his job or any other experience, an individual does not communicate the number of utils that he feels. Instead, he expresses his posterior preference over available alternatives conditional on acquired knowledge of the past. This new interpretation of reported...

In this paper, we investigate individuals' investment in status in an environment where no monetary return can possibly be derived from reaching a better relative position. We use a real-effort experiment in which we permit individuals to learn and potentially improve their relative position in...

Using a unique panel data of Dutch innovation and financial variables we empirically investigate how financing and innovation vary across firm characteristics. The study also tries to gauge the extent of market failure due to the presence of financing frictions. Our main findings can be...

We examine whether risk, timing or mispricing hypotheses can explain the underperformance of private and public equity issuers, in Canada, where both categories share several common characteristics. Adding an investment risk factor to the TFPM reduces, but does not eliminate, the...

Of the many fundamental questions left unanswered in finance, one relates to corporate risk management practices. My contention in this paper is that managerial habits and organizational inertia play an important role in the decision to purchase corporate insurance and engage in risk management...

We model the portfolio decisions by managers with career concerns in a context where ownership of the firm's stock can affect the outcome of promotion contests. In addition to their utility from wealth, such managers derive utility from the monetary and non-monetary benefits (prestige) of...