Jensen (1986), among others, suggests that executives may increase firm size beyond the optimum because executive compensation relates positively to firm size. We test this hypothesis by (i) analyzing changes in executive compensation around large acquisitions, and (ii) by comparing executive...

We study 67 rights offerings by closed-end funds over 1988-1994 and gauge their impact on the fund's shareholders and managers. We find that funds conduct rights offerings while they are trading at a premium, reverts to a discount after the offering. Theories of asymmetric information about...

CEO compensation has been much debated in the 1990s, both in academic circles and in the media. We contrast two views on CEO compensation. The first view is that there has been a very positive trend in CEO compensation - that compensation committees have become more responsive to shareholder...

In 1992-1993, the SEC required enhanced disclosure on executive compensation and Congress enacted tax legislation, i.e. Internal Revenue Code Section 162(m), limiting the deductibility of non-performance related compensation over one million dollars. We examine the effects of these regulatory...

CEO compensation has been much debated in the 1990s, both in academic circles and in the media. We contrast two views on CEO compensation. The first view is that there has been a very positive trend in CEO compensation, that compensation committees have become more responsive to shareholder...

We study 120 rights offerings by closed-end funds over 1988-1998. On average, rights offerings are announced when funds trade at a premium. This premium turns into a discount over the course of the offering. The premium decline is more severe when the increases in investment advisor's...

We compare acquisitions completed with and without investment bank advice over the 1981-1992 period. We find that the choice to use an investment bank depends on the complexity of the transactions, the type of transaction (takeovers versus acquisitions of assets), the acquiror's prior...

We compare acquisitions completed with and without investment bank advice. We find that the choice to use an investment bank depends on the complexity of the transaction, the type of transaction (takeovers versus acquisitions of assets) and the acquiror's prior acquisition experience. For...