Similar Search Results

How Do Venture Capitalists Make Decisions?

Gompers, Paul A. - 2016

We survey 885 institutional venture capitalists (VCs) at 681 firms to learn how they make decisions across eight areas: deal sourcing; investment selection; valuation; deal structure; post-investment value-added; exits; internal firm organization; and relationships with limited partners. In selecting...

Persistent link: https://www.econbiz.de/10012983682

Executive Compensation and Corporate Governance in the U.S : Perceptions, Facts and Challenges

Kaplan, Steven N. - 2012

In this paper, I consider the evidence for three common perceptions of U.S. public company CEO pay and corporate governance: (1) CEOs are overpaid and their pay keeps increasing; (2) CEOs are not paid for their performance; and (3) boards do not penalize CEOs for poor performance. While average...

Persistent link: https://www.econbiz.de/10013100668

Indirect Incentives of Hedge Fund Managers

Lim, Jongha - 2013

managers. Flows respond quickly and strongly to performance; lagged performance has a monotonically decreasing impact on flows … times as large as direct incentives from incentive fees and returns to managers' own investment in the fund. For new funds … generated for their investors in a given year, managers receive close to another dollar in direct performance fees plus the …

Persistent link: https://www.econbiz.de/10013084738

Learning About CEO Ability and Stock Return Volatility

Pan, Yihui - 2013

When there is uncertainty about a CEO's quality, news about the firm causes rational investors to update their expectation of the firm's profitability for two reasons: Updates occur because of the direct effect of the news, and also because the news can cause an updated assessment of the CEO's...

Persistent link: https://www.econbiz.de/10013085131

Assessing Managerial Ability : Implications for Corporate Governance

Hermalin, Benjamin E. - 2017

both managers and firms, and affects the contractual relationships between those parties in important ways. Assessment (or …

Persistent link: https://www.econbiz.de/10012963757

Wall Street and Main Street : What Contributes to the Rise in the Highest Incomes?

Rauh, Joshua D. - 2007

We consider how much of the top end of the income distribution can be attributed to four sectors -- top executives of non-financial firms (Main Street); financial service sector employees from investment banks, hedge funds, private equity funds, and mutual funds (Wall Street); corporate lawyers;...

Persistent link: https://www.econbiz.de/10012776462

Optimal Executive Compensation vs. Managerial Power : A Review of Lucian Bebchuk and Jesse Fried's "Pay Without Performance: The Unfulfilled Promise of Executive Compensation"

Weisbach, Michael S. - 2007

This essay reviews Bebchuk and Fried's quot;Pay without Performance: The Unfulfilled Promise of Executive Compensationquot;. Bebchuk and Fried criticize the standard view of executive compensation, in which executives negotiate contracts with shareholders that provide incentives that motivate...

Persistent link: https://www.econbiz.de/10012778036

Horses and Rabbits? Optimal Dynamic Capital Structure from Shareholder and Manager Perspectives

Ju, Nengjiu - 2010

This paper examines optimal capital structure choice using a dynamic capital structure model that is calibrated to reflect actual firm characteristics. The model uses contingent-claim methods to value interest tax shields, allows for reorganization in bankruptcy, and maintains a long-run target...

Persistent link: https://www.econbiz.de/10012762899

Understanding Corporate Governance Through Learning Models of Managerial Competence

Hermalin, Benjamin E. - 2014

A manager's shareholders, board of directors, and potential future employers are continually assessing his ability. A rich literature has documented that this insight has profound implications for corporate governance because assessment generates incentives (good and bad), introduces assorted...

Persistent link: https://www.econbiz.de/10013055514

Measuring Institutional Investors’ Skill from Their Investments in Private Equity

Cavagnaro, Daniel - 2016

Using a large sample of institutional investors' private equity investments in venture and buyout funds, we estimate the extent to which investors' skill affects returns from private equity investments. We first consider whether investors have differential skill by comparing the distribution of...

Persistent link: https://www.econbiz.de/10012984744