In this paper, we set forth a scoreboard for dealing with those risks that arise from the governance of any organization. Firstly, we introduce the subject of governance risks and, secondly, we move on to a cardinal index that not only measures up governance performance but also provides with a...

In this Article we submit that the compensation structures at banks before the financial crisis were not necessarily flawed and that recent reforms in this area largely reflect already existing best practices. In Part I we review recent empirical studies on corporate governance and executive pay...

Key points:• This article considers how the recent market turmoil affected national banking systems, thereby prompting state measures;• It describes the remuneration problems shown by the financial crisis: rewards for failure; short-term behaviour; inappropriate design of performance...

Market multiples are a common tool in the financial community for asset and business valuations. In this article, we aim to analyse the accuracy and the underlying drivers behind valuation multiples as tell as what explains their relative and absolute level. For this we use a European data...

On 27 February 2013, the European Union (EU) reached a provisional deal to limit the amount of bankers' bonuses to the amount of fixed remuneration (i.e., a one-to-one ratio); the cap could be increased to 2:1 with the backing of a supermajority of shareholders. I demonstrate that the pending EU...

For entrepreneurial firms it is essential to develop new ideas and products, build a brand name and reputation, and expand manufacturing capacity to protect competitiveness and ensure long-run success and survival. For a sample of 2,679 European Initial Public Offerings (IPOs) we analyze how...

Negative risk-decoupling, otherwise known as empty voting, is a popular strategy amongst hedge funds and other activist investors. In short, it is the attempt to decouple the economic risk from the share's ownership position, retaining in particular the voting right without risk. This paper uses...

This paper addresses the questions whether European mutual fund managers rely on sell-side analyst information with respect to their investment decisions and whether this behavior impacts fund performance. Based on a sample of over 4,300 European mutual funds and around 1.2 million portfolio...