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We study changes in the design of CEO contracts when firms transition from being public with dispersedshareholders to having strong principals in the form of private equity sponsors. These principals redesignsome, but far from all, contract characteristics. There is no evidence that they reduce...
Persistent link: https://www.econbiz.de/10009486819
value and aggregate economic activity. We investigate whether and how bank governance, especially private vs. non …-private bank ownership, affects financial constraints of small and medium-sized enterprises (SMEs). We focus on SMEs because they … are more opaque, bank-dependent and riskier than large firms. Given the significant differences between private and non …
Persistent link: https://www.econbiz.de/10009005132
. Firstly, we find out which factors are statisticallysignificant and relevant to a bank’s selling price. Secondly, a least …
Persistent link: https://www.econbiz.de/10005868074
Building on the ‘law and economics’ literature, this paper analyses corporategovernance implications of debt financing in an environment where a dominant owner isable to extract ex ante ‘private benefits of control’. Ownership concentration may result inlower efficiency, measured as a...
Persistent link: https://www.econbiz.de/10005868255
bank to restructure the borrower's firm in the case of distress, thepossibility to appropriate private benefits from …
Persistent link: https://www.econbiz.de/10005840402
Using a unique bank-level dataset on the Ugandan banking system over theperiod 1999 to 2005, we explore the factors … banking efficiency. Similarly, macroeconomic variables canexplain little of the over-time variation in bank spreads. Bank …-level characteristics, onthe other hand, such as bank size, operating costs, and composition of loan portfolio,explain a large proportion of …
Persistent link: https://www.econbiz.de/10005870169
Bank intermediated finance has been cited frequently as the preferred means for channeling funds from savers to firms … assertions about the considerable power of German banks and the advantages of a bank relation, empirical support is mixed. With a … unique dataset and a focus on the fragility/sturdiness of inferences, this paper evaluates German bank influence in terms of …
Persistent link: https://www.econbiz.de/10005865222
There is a debate on whether executive pay reflects rent extraction due to “managerialpower” or is the result of arms-length bargaining in a principal-agent framework. In this paperwe offer a test of the managerial power hypothesis by empirically examining the CEOcompensation of U.S. public...
Persistent link: https://www.econbiz.de/10009418922
This paper provides new UK evidence on the relationship between managerialincentives and firm risk using a hand-collected database of 3307 executive yearobservations (698 CEO years and 2609 other executive years). We find that therelation between pay performance sensitivity and firm risk...
Persistent link: https://www.econbiz.de/10005870001
This paper examines the effect of using different option valuation models to calculatethe fair market value of Executive Stock Options (ESOs) granted to executivedirectors of UK firms. Our key objective is to demonstrate empirically that somecompanies will have greater incentive and benefit from...
Persistent link: https://www.econbiz.de/10005870083