Similar Search Results

Board bias, information, and investment efficiency

Gregor, Martin; Michaeli, Beatrice - 2024

We study how interest alignment between CEOs and corporate boards influences investment efficiency and identify a novel force behind the benefit of misaligned preferences. Our model entails a CEO who encounters a project, gathers investment-relevant information, and decides whether or not to...

Persistent link: https://www.econbiz.de/10014577230

Board compensation and investment efficiency

Gregor, Martin; Michaeli, Beatrice - 2024

In their role as initiators of new business projects, CEOs have an advantage over access to and control over project-related information. This exacerbates pre-existing agency frictions and may lead to investment inefficiencies. To counteract this challenge, incentive compensation for corporate...

Persistent link: https://www.econbiz.de/10014577283

Corporate pension plans and investment choices: Bargaining or conforming?

Duygun, Meryem; Huang, Bihong; Qian, Xiaolin; Tam, … - 2017

This paper investigates the impacts of defined-benefit (DB) pension plans on the corporate investment choices between diversifying and non-diversifying investments. We find a firm's DB plan coverage is negatively associated with its propensity of making a major investment. Subject to a major...

Persistent link: https://www.econbiz.de/10011688711

Are firm- and country-specific governance substitutes? Evidence from financial contracts in emerging markets

Francis, Bill; Hasan, Iftekhar; Song, Liang - 2012

We investigate how borrowers corporate governance influences bank loan contracting terms in emerging markets and how this relation varies across countries with different country-level governance. We find that borrowers with stronger corporate governance obtain favorable contracting terms with...

Persistent link: https://www.econbiz.de/10012148146

A two-tiered approach to the valuation of investment projects adjusted for governance risk

Apreda, Rodolfo - 2009

This paper sets forth a pair of distinctive contributions to the subject. In the first place, it provides a unified approach to capital investment decisions, by means of a two-tiered framework of analysis. Such approach consists in working out the net present value of the project by discounting...

Persistent link: https://www.econbiz.de/10010323277

A real options approach to tender offers and acquisitions processes

Dapena, José Pablo; Fidalgo, Santiago - 2003

Corporate control has added value for an investor since it gives degrees of freedom about the use of assets, sources of finance, salaries, etc. On the other hand, real options create value through the flexibility associated to the ability to react to some relevant uncertainty. The process of...

Persistent link: https://www.econbiz.de/10010323161

The Real Effects of Private Equity Buyouts

Tåg, Joacim - 2010

Private equity buyouts have become a common element in the industrial development process. I survey the literature on the real economic effect of buyouts: employment, wages, productivity, and long-run investments. Employment tend to marginally fall after a buyout in most countries studied, with...

Persistent link: https://www.econbiz.de/10010320213

Integration, Regulation, and Corporate Governance in the EU Banking Sector

Köhler, Matthias - 2010

Persistent link: https://www.econbiz.de/10010302116

CEO preferences and acquisitions

Jenter, Dirk; Lewellen, Katharina - 2011

of takeover bids. Mergers frequently force target CEOs to retire early, and CEOs' private merger costs are the forgone … costs, we find strong evidence that target CEO preferences affect merger patterns. The likelihood of receiving a takeover … in takeover activity appears discretely at the age-65 threshold, with no gradual increase as CEOs approach retirement age …

Persistent link: https://www.econbiz.de/10010280635

Internal sources of finance and the great recession

Barnes, Michelle L.; Pancost, N. Aaron - 2010

The rising stockpile of cash as a share of total assets at U.S. firms has intrigued economists since at least the paper of Bates, Kahle, and Stulz (2006), yet there has been relatively little work on where this cash has come from and how it is related to investment performance. We exploit...

Persistent link: https://www.econbiz.de/10010280899