This paper surveys the literature criticizing the view that managers should run companies aiming to create shareholder value by maximizing stock prices. Based on a multidisciplinary approach, I include empirical and theoretical papers from fields such as corporate law, management, finance,...

We document a positive relation between shareholder monitoring and total payout to shareholders. This relation is stronger for firms with greater potential for agency problems. We also show that monitoring is positively associated with future improvements in payout, operating performance, and...

The Working Capital Management (WCM) has an important role in the firm's success or failure because it directly effects the overall business health of the firm. This study examined the impact of WCM on profitability and shareholders wealth using the 50 companies listed in different sectors on...

In this paper, we study the importance of social networks in the CEO labor market. Specifically, we examine whether (i) CEO networks enhance their pay; and (ii) the mechanism by which CEO networks increase pay is due to enhancements in firm productivity. We use CEO educational networks and find...

This study examines the effect of shareholder scrutiny of tax issues on corporate tax behavior. Specifically, we examine the factors associated with receiving shareholder tax litigation and the effect of such litigation on the future tax behavior of both the sued firm and its peers. We find...

We propose a genuinely internal approach to project valuation and decision based on the average Return On Investment (ROI), obtained as the ratio of total operating profit (NOPAT) to total invested capital or, equivalently, as the ratio of net cash flow to total invested capital. The approach...

This paper examines whether and how the appearance of chief executives officers (CEOs) relates to shareholder value. We obtain a Facial Attractiveness Index of 667 CEOs based on their facial geometry. CEOs with a higher Facial Attractiveness Index are associated with better returns around their...