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The Agency Costs of Activism : Information Leakage, Thwarted Majorities, and the Public Morality

Coffee, John C. - 2017

Persistent link: https://www.econbiz.de/10012945003

Corporate Governance in the Presence of Active and Passive Delegated Investment

Corum, Adrian Aycan - 2020

We examine the governance role of delegated portfolio managers. In our model, investors decide how to allocate their wealth between passive funds, active funds, and private savings, and asset management fees are endogenously determined. Funds' ownership stakes and asset management fees determine...

Persistent link: https://www.econbiz.de/10012824723

Index-Fund Governance : An Empirical Study of the Lending-Voting Tradeoff

Hu, Edwin - 2020

Institutional investors' role in shareholder voting is among the most hotly debated subjects in corporate governance. Some argue that institutions lack adequate incentives to effectively monitor managers; others contend that the largest institutions have developed analytical resources that...

Persistent link: https://www.econbiz.de/10012825704

A Simple Model of Corporate Fiduciary Duties : With an Application to Corporate Compliance

Bunting, W.C. - 2020

This article models the duty of care as a response to moral hazard where the principal seeks to induce effort that is costly to the agent and unobservable by the principal. The duty of loyalty, by contrast, is modeled as a response to adverse selection where the principal seeks truthful...

Persistent link: https://www.econbiz.de/10012826512

Principal Costs : A New Theory for Corporate Law and Governance

Goshen, Zohar - 2017

principal-cost theory, which posits that each firm's optimal governance structure minimizes the sum of principal costs, produced …. The empirical predictions produced by principal-cost theory are more accurate than those produced by any theory focused … solely on agency costs. Principal-cost theory also suggests different policy prescriptions. Rather than banning some …

Persistent link: https://www.econbiz.de/10012972091

Wage-Setting Institutions and Corporate Governance

Dimick, Matthew - 2017

Why do corporate governance law and practice differ across countries? This paper explains how wage-setting institutions influence ownership structures and investor protection laws. In particular, we identify a nonmonotonic relationship between the level of centralization in wage-bargaining...

Persistent link: https://www.econbiz.de/10012973560

Excessive Risk-Taking Corporate Governance, and Double Liability : Toward a Bank Shareholder-Orientated Model

Ridyard, Richard - 2017

The financial crisis of 2007-09 was interpreted by many as evidence that the incentives of managers were not optimally aligned with the interests of shareholders. As a result, a plethora of proposals have been put forward seeking to increase shareholder engagement. However, this shareholder...

Persistent link: https://www.econbiz.de/10012973657

Corporate Governance and the Profitability of Insider Trading

Dai, Lili - 2017

This paper examines the influence of corporate governance systems on insiders' ability to profit from their information advantage and the ways through which corporate governance systems influence such ability. We find that corporate governance significantly reduces the profitability of insider...

Persistent link: https://www.econbiz.de/10012975139

How Do Acquirers Choose between Mergers and Tender Offers?

Offenberg, David - 2016

and cost. Consistent with this theory, we show that deals in more competitive environments and deals with fewer external …

Persistent link: https://www.econbiz.de/10013005735

The Economics of Bankruptcy : An Introduction to the Literature

Morrison, Edward R. - 2016

This essay surveys important contributions to the economics of bankruptcy. It is an introductory chapter for a forthcoming volume (from Edward Elgar Press) that compiles the work of legal scholars as well as economists working in the field of corporate finance. The essay begins with the...

Persistent link: https://www.econbiz.de/10013008997