We analyze simultaneously the determinants of governance, debt, and activist institutional ownership as a system of three equations. We find that governance relates positively to activist institutional ownership, but has no relation with leverage. Leverage is negatively related to governance and...

We examine the effect of financial advisor reputation on wealth gains in corporate takeovers. In view of the adversarial nature of a takeover, we construct a measure of the relative reputation of the advisor. We document that the absolute wealth gain as well as the share of the total takeover...

We use a system of equations to investigate the endogenous relation between Ramp;D investment and CEO compensation. Growth opportunity is positively related to the use of stock options. Stock options positively affect Ramp;D while restricted stock has a negative influence. These results suggest...

We use over 22,000 firm-year observations from 1995-2010 to investigate whether combining roles of CEO and board-chair causes poor performance. Our research design allows us to reconcile disagreement in the literature about whether CEO-chair duality impacts shareholder value. CEOs are awarded...

We examine the relation between mutual fund votes on shareholder executive compensation proposals and pension-related business ties between fund families and the firms. In unconditional tests, we find that fund families support management when they have pension ties to the firm. We find no...

This paper examines the relationship between investment bank participation in public debt exchange offers by financially distressed firms and the composition of the offer. Investment banks negotiate with bondholders on behalf of the firm, act as dealer manager for the exchange, promote the...

We examine the performance of 84 firms that adopt value-based management (VBM) systems during the period 1984-1997. The typical firm significantly improves matched-firm-adjusted residual income after adopting VBM. This improvement persists for the five post-adoption years studied. After...

To avoid Chapter 11 bankruptcy, financially distressed firms often undertake out-of-court restructurings, which take the form of exchange offers for firms with public debt outstanding. We examine the choice between potentially lower cost and faster offers of unregistered securities under Section...

Operating performance and stock return results imply that managers who commit fraud anticipate large stock price declines if they were to report truthfully, which would cause greater losses for managerial stockholdings than for options because of differences in convexity. Fraud firms have...

In this article, we study the role of financial advisors in successful corporate acquisitions through tender offers. Our analysis distinguishes the advisor's role on the basis of whether the advisor's client is the target or the bidder. We document systematic patterns in takeover deal...