This paper links the CEO’s concerns for the current stock price to reductions in real investment. These concerns depend on the amount of equity he intends to sell in the short-term, but actual equity sales are an endogenous decision. We use the amount of stock and options scheduled to vest in...

We develop and test a simple asymmetric information model of CEO quality, in which CEOs know their quality and shareholders may only infer this from observations of corporate profits. CEOs signal their quality to shareholders by manipulating the time path of corporate profits. Though...

We examine whether stock market-listed firms in the U.S. invest suboptimally due to agency costs resulting from separation of ownership and control. We derive testable predictions to distinguish between underinvestment due to rational “short-termism” and overinvestment due to “empire...

This paper investigates the impact of social and psychological factors on the quality of boardroom decision-making. It is argued that bias in the boardroom undermines the monitoring function of boards, with a particularly negative impact on the functional independence of non-executive directors....

On May 11-12, 2011, SUERF, the Belgian Financial Forum, the Brussels Finance Institute and the Centre for European Policy Studies (CEPS) jointly organised the 29th SUERF Colloquium New paradigms in money and finance? The papers included in this SUERF Study are based on contributions to the...

Mit der Weigerung, die Vergütung ihres Vorstandes einzeln offen zu legen, verstoßen vieler DAX-Unternehmen gegen eine Empfehlung des Deutschen Corporate Governance Kodex. Brigitte Zypries, Bundesjustizministerin, plädiert zwar für die Offenlegung der Vorstandsgehälter: "Damit Aktionäre ihr...

Purpose – This paper aims to examine the impact of managerial equity ownership on return on assets as a measure of profitability and two financial statement-based agency cost measures, i.e. asset utilization and an expense ratio, which proxy for management's efficiency in use of assets and...

В статье рассматривается система управления корпорацией и ее ключевые элементы. Автор показал, что корпоративное управление и его качество находятся под...