We empirically study how financial regulations generate corporate governance spillovers through the institutional ownership network. Exploiting the Regulation SHO Pilot experiment, we find a significant removal of anti-takeover provisions by Non-Pilot firms when their motivated monitors are more...

We analyze how the materialization of climate risk in the institutional investors' portfolios spurs a propagation effect on the information content of stock prices. Institutional investors with a relatively high portfolio exposure to disasters divest from disaster-hit stocks, decrease the...

This paper examines the effect of “superstar” CEOs (i.e. CEOs that win prestigious business awards) on the voting behavior in shareholder proposals. We show that the superstar status strongly affects the outcome of shareholder proposals in favor of the management, both compared to all...

Return on Equity (RoE) is a central measure of performance in the banking industry, which is used to allocate capital inside and across divisions. The reliance on this metric emerged from the risk management approach to banking which underlies bank capital regulation. Using the financial crisis,...

This paper analyzes the influence of stakeholder orientation on the design of managerial incentives. Our tests exploit the quasi-natural experiment provided by the staggered adoption of directors' duties laws (i.e., state-level laws that explicitly expand board members' duties to act in the best...

This paper analyzes the relationship between investor horizons and employee satisfaction. Because employee satisfaction generates substantial value over the long run, it is well suited to provide an empirical test of Bénabou and Tirole (2010)'s “long-term perspective” vision of CSR. We...

Bank capital is the cornerstone of bank regulation and is considered a key determinant of a bank's ability to withstand economic shocks. In the area of bank capital regulation, the general view is that more bank capital is better, irrespective of who provides it. In this paper, we investigate...

This paper examines the role played by the media in the shareholder proposal process. We find a positive relation between media coverage and the likelihood to be targeted by governance proposals. The effect is mostly concentrated in proposals submitted by non-institutional shareholders and...

While the benefits of higher bank capital for financial stability are largely uncontested, there is a strong disagreement on how bank capital affects shareholder value (i.e., whether higher capital is privately optimal from the perspective of bank shareholders). In this paper, we explore...