Previous work on board size effects in closely held corporations has established a negative correlation between board size and firm performance. We argue that this work has been incomplete in analysing the causal relationship due to lack of ownership information and weak identification...

We identify two opposing effects of issuing equity with tag-along rights that secure an equal price in the event of a takeover. First, the anti-self dealing effect commits controlling owners to sell only to new owners that increase shareholder value. Second, the rent transfer effect shifts rents...

We use exogenous changes in the size of local municipalities in Denmark to estimate the effect of political power on the income of politicians and their family members. We exploit two dimensions of political power: heterogeneity in politicians' roles within a given district, and exogenous...

Using stock price reactions to sudden deaths of executives as a measure of expected contribution to shareholder value, we provide empirical evidence on the relationship between executive pay and managerial contribution to shareholder value. We find, first, that the managerial labor market is...

The entrepreneurial finance literature has highlighted that institutional investors are the main contributors to private equity funds. This paper complements these findings by documenting that institutional investors also invest directly in private equity. A major concern for such investments is...

This paper provides new evidence on the private equity premium puzzle suggested by Moskowitz and Vissing-Joslash;rgensen (2002); Even professional investors like pension funds seem to get a poor risk-return tradeoff from investing directly in private equity. We examine whether high risk...

Previous research initiated by Claessens et al. (2002) has established a value discount of disproportional ownership structures. Due to omitted variables problems it is difficult to provide a causal interpretation of these findings. We provide a thorough analysis of this value discount in a...

This study examines how costly forced turnover is for the CEO using income data from the official records at the Danish Tax Authorities. We find that ousted CEOs' personal income is 40% lower in the five years following forced turnovers. The decline is driven by labor market outcomes: Labor and...

Exploiting the unique institutional setting of Hong Kong's real estate market, we uncover a curious ripple effect of haunted houses on the prices of nearby houses. Prices drop on average 19% for units that become haunted, 9% for units on the same floor, 6% for units in the same block, and 1% for...

Exploiting the unique institutional setting of Hong Kong's real estate market, we uncover a curious ripple effect of haunted houses on the prices of nearby houses. Prices drop on average 20% for units that become haunted, 10% for units on the same floor, 7% for units in the same block, and 1%...