We examine the relationship between CEO ownership and stock market performance. Firms in which the CEO voluntarily holds a considerable share of outstanding stocks outperform the market by more than 10 percent p.a. after controlling for traditional risk factors. The effect is most pronounced in...

We examine the relationship between CEO ownership and stock market performance. A strategy based on public information about managerial ownership delivers annual abnormal returns of 4 to 10%. The effect is strongest among firms with weak external governance, weak product market competition, and...

type="main" <title type="main">ABSTRACT</title> <p>We examine the relationship between CEO ownership and stock market performance. A strategy based on public information about managerial ownership delivers annual abnormal returns of 4% to 10%. The effect is strongest among firms with weak external governance, weak product...</p>

We examine the relationship between CEO ownership and stock market performance of S&P 500 (S&P 1500) firms from 1994-2005 (1996-2005). We find that firms in which the CEO holds a considerable share of outstanding stocks outperform the market by up to 16% p.a. after controlling for traditional...

The CAPM is a powerful tool to analyse stock markets. Yet, empirical anomalies remain, e.g.: the equity premium or low risk free interest rate puzzle, IPO stock price behavior around unlock dates and high trading volumes. This paper links corporate finance and asset pricing models and derives...

The CAPM is a powerful tool to analyse stock markets. Yet, empirical anomalies remain, e.g.: the equity premium or low risk free interest rate puzzle, IPO stock price behavior around unlock dates and high trading volumes. This paper links corporate finance and asset pricing models and derives...

Arbitrage-free asset pricing theory suggests that equilibrium price and equilibrium value of a firm coincide and correctly anticipate the equilibrium effort of a value-enhancing manager, called the distinguished player. This article shows that in equilibrium investors trade shares of such a firm...

It is generally presumed that strengthening legal enforcement of lender rights increases credit access for all borrowers, by expanding the set of incentive compatible loan contracts. This is based on an implicit assumption of infinitely elastic supply of loans. With inelastic supply,...

What are the effects of restricting bonded labor clauses in tenancy or debt contracts? While such restrictions reduce agents' ability to credibly commit ex ante to repay principals in states where they default on their financial obligations, they also generate a pecuniary externality on other...