Showing 1 - 10 of 14,103
This paper investigates interactions between two central corporate governance mechanisms: shareholder rights and managerial ownership. I find that the effect of managerial ownership on firm value crucially depends on shareholder rights. Managerial ownership enhances firm value when shareholder...
Persistent link: https://www.econbiz.de/10013068483
Contrary to previous literature we hypothesize that interests of labor may well – like that of shareholders – aim at …
Persistent link: https://www.econbiz.de/10011308423
Contrary to previous literature we hypothesize that labor's interest may well – like that of shareholders – aim at … interest in increasing incentive-based compensation to avoid management's excessive risk taking and short-run oriented …
Persistent link: https://www.econbiz.de/10011526742
We examine whether criminal records of CEOs and rank-and-file employees are associated with firms’ likelihood of bankruptcy and whether lenders adjust their required cost of debt accordingly. We use a nationwide sample of private firms and criminal registers covering all firm employees. We...
Persistent link: https://www.econbiz.de/10013231499
This paper examines the incentives from stock options for loss-averse employees subject to probability weighting. Employing the certainty equivalence principle, I built on insights from Cumulative Prospect Theory (CPT) to derive a continuous time model to value options from the perspective of a...
Persistent link: https://www.econbiz.de/10013114784
Clawbacks are contractual provisions in executive compensation contracts that allow for an ex post recoupment of variable pay if certain triggering conditions are met. As a result of regulatory responses to financial crises and corporate scandals as well as of growing shareholder pressure to...
Persistent link: https://www.econbiz.de/10012833330
I study the optimal choice of projects in a continuous-time moral hazard model with multitasking. I characterize the distortions caused by moral hazard and the dynamics of the firm's project choice. Both overinvestment and underinvestment relative to an NPV criterion can occur on the path of the...
Persistent link: https://www.econbiz.de/10012104572
This paper studies the role of voluntary disclosure in crowding out independent research about firm value. In the model, when inside firm owners make it easier for outside investors to obtain inexpensive biased information from the manager, then investors rely less on costly unbiased research....
Persistent link: https://www.econbiz.de/10012826268
resources for private benefits at the expense of other shareholders. Such behavior leads the controlling owners to prefer long … minority shareholders over the maturity structure of debt. In this paper, we examine whether the presence of multiple large … shareholders (MLS), beyond the controlling owner, helps to mitigate this conflict. Using a large data set of French publicly traded …
Persistent link: https://www.econbiz.de/10013014423
There are several measures of equity compensation that may provide shareholders with distinct and useful information … for evaluating CEO pay. We examine whether shareholders consider additional disclosures of equity compensation measures … distinct measure of equity compensation, is a determinant of shareholder voting for management sponsored equity plans and …
Persistent link: https://www.econbiz.de/10012903909