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Corporate goodness and shareholder wealth

Krüger, Philipp - In: Journal of Financial Economics 115 (2015) 2, pp. 304-329

Using a unique data set, I study how stock markets react to positive and negative events concerned with a firm׳s corporate social responsibility (CSR). I show that investors respond strongly negatively to negative events and weakly negatively to positive events. I then show that investors do...

Persistent link: https://www.econbiz.de/10011189254

China׳s secondary privatization: Perspectives from the Split-Share Structure Reform

Liao, Li; Liu, Bibo; Wang, Hao - In: Journal of Financial Economics 113 (2014) 3, pp. 500-518

-owned enterprises (SOEs), opening up the gate to China׳s secondary privatization. The expectation of privatization quickly boosted SOE … SOE performance are positively correlated to government agents’ privatization-led incentive of increasing state …-owned share value. In terms of privatization methodology, the reform adopted a market mechanism that played an effective …

Persistent link: https://www.econbiz.de/10011039280

Risk tolerance and entrepreneurship

Hvide, Hans K.; Panos, Georgios A. - In: Journal of Financial Economics 111 (2014) 1, pp. 200-223

A theoretical tradition argues that more risk tolerant individuals are more likely to become entrepreneurs but perform worse. We test and confirm these predictions with several risk tolerance proxies. Using investment data for 400,000 individuals, we find that common stock investors are around...

Persistent link: https://www.econbiz.de/10010718731

Learning from peers' stock prices and corporate investment

Foucault, Thierry; Fresard, Laurent - In: Journal of Financial Economics 111 (2014) 3, pp. 554-577

Peers' valuation matters for firms' investment: a one standard deviation increase in peers' valuation is associated with a 5.9% increase in corporate investment. This association is stronger when a firm's stock price informativeness is lower or when its managers appear less informed. Also, the...

Persistent link: https://www.econbiz.de/10010743553

Entrepreneurial risk, investment, and innovation

Caggese, Andrea - In: Journal of Financial Economics 106 (2012) 2, pp. 287-307

I estimate the effect of uncertainty on risky innovation using a panel of 11,417 manufacturing firms. I find that an increase in uncertainty has a large negative effect on the risky innovation of entrepreneurial firms, while it does not have any significant impact on other firms. This negative...

Persistent link: https://www.econbiz.de/10010593844

The death of the deal: Are withdrawn acquisition deals informative of CEO quality?

Jacobsen, Stacey - In: Journal of Financial Economics 114 (2014) 1, pp. 54-83

advance to a larger firm than a control group of CEOs. The finding that the market attaches value to CEO-specific information …

Persistent link: https://www.econbiz.de/10010906185

Independent director incentives: Where do talented directors spend their limited time and energy?

Masulis, Ronald W.; Mobbs, Shawn - In: Journal of Financial Economics 111 (2014) 2, pp. 406-429

We study reputation incentives in the director labor market and find that directors with multiple directorships distribute their effort unequally based on the directorship's relative prestige. When directors experience an exogenous increase in a directorship's relative ranking, their board...

Persistent link: https://www.econbiz.de/10010737660

Accountability of independent directors: Evidence from firms subject to securities litigation

Brochet, Francois; Srinivasan, Suraj - In: Journal of Financial Economics 111 (2014) 2, pp. 430-449

We examine which independent directors are held accountable when investors sue firms for financial and disclosure-related fraud. Investors can name independent directors as defendants in lawsuits, and they can vote against their reelection to express displeasure over the directors’...

Persistent link: https://www.econbiz.de/10010737663

Managerial risk taking incentives and corporate pension policy

Anantharaman, Divya; Lee, Yong Gyu - In: Journal of Financial Economics 111 (2014) 2, pp. 328-351

We examine whether the compensation incentives of top management affect the extent of risk shifting versus risk management behavior in pension plans. We find that risk shifting through pension underfunding (and, to a lesser extent, through pension asset allocation to risky securities) is...

Persistent link: https://www.econbiz.de/10010737666

Monitoring and corporate disclosure: Evidence from a natural experiment

Irani, Rustom M.; Oesch, David - In: Journal of Financial Economics 109 (2013) 2, pp. 398-418

Using an experimental design that exploits exogenous reductions in coverage resulting from brokerage house mergers, we find that a reduction in coverage causes a deterioration in financial reporting quality. The effect of coverage on disclosure is more pronounced for firms with weak shareholder...

Persistent link: https://www.econbiz.de/10010678708