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Since the late 1990s, the number of apologies being offered by CEOs of large companies has exploded. Communication and management scholars have analyzed whether and why some of these apologies are more effective or more ethical than others. Most of these analyses, however, have remained at the...
Persistent link: https://www.econbiz.de/10014121225
Corporate governance is a recent concept that encompasses the costs caused by managerial misbehavior. Corporate governance is concerned with how organizations in general, and corporations in particular, produce value and how that value is distributed among the members of the corporation, its...
Persistent link: https://www.econbiz.de/10011928257
We study a principal-agent setting in which both sides learn about future profitability from output, and the project can be abandoned/terminated if profitability is too low. With learning, shirking by the agent both reduces output and lowers the principal's estimate of future profitability. The...
Persistent link: https://www.econbiz.de/10011864825
A unified framework is presented to characterise the capital structure of firms that face borrowing restrictions - which extends the classic theory of capital by incorporating elements from actuarial and agency theory. It is demonstrated that the bankruptcy and agency costs afforded by these...
Persistent link: https://www.econbiz.de/10013128238
In this Article we submit that the compensation structures at banks before the financial crisis were not necessarily … short-term incentives were a cause of the crisis. The Financial Stability Board Principles for Sound Compensation Practices … groups concerned. They pick up traditional compensation criteria from pre-crisis best practices, adapting them to the post-crisis …
Persistent link: https://www.econbiz.de/10013132545
state measures;• It describes the remuneration problems shown by the financial crisis: rewards for failure; short … becoming a new area for regulation and supervision post-crisis.• The conclusion reached is that the crisis generated a race to …
Persistent link: https://www.econbiz.de/10013136173
I examine how the debt covenant structure of a firm varies with managerial risk-taking incentives via CEO compensation sensitivities to stock return volatility (Vega). I build a comprehensive firm debt covenant index by including both public and private debt issues. I find a robust negative...
Persistent link: https://www.econbiz.de/10013099830
Persistent link: https://www.econbiz.de/10013064153
We examine the relation between organizational structure (public vs private) and managerial turnover in a large sample of U.S. offered mutual funds. Consistent with the hypothesis that publicly traded firms focus more on shorter term performance, we find that public sponsors are more sensitive...
Persistent link: https://www.econbiz.de/10013070669
through the financial crisis. It also presents the results of an analysis of the remuneration practices adopted by the largest … European listed firms before and after the crisis, drawing policy conclusions on the efficacy and prospects of reforms, in …
Persistent link: https://www.econbiz.de/10013073163