Performance
Working Paper
Ratings Reform: The Good, The Bad, and The Ugly
Both in Europe and in the United States, major steps have been taken to render credit rating agencies more accountable. But do these steps address the causes of the debacle in the subprime mortgage market that triggered the 2008-2009 crisis?...Read more
Trust, Owner Rights, Employees and Firm Performance
This is a study of variations in trust relations according to institutional setting. A wide body of comparative institutional literature within economics and finance engages with trust. However, as most comparative institutional literature uses...Read more
L-Shares: Rewarding Long-Term Investors
We argue that a fundamental reason for the short term perspective of corporate executives is the short-term orientation of shareholders and financial markets that drive the performance benchmarks of CEOs. In our view, long-term committed...Read more
The Effects of Management-Board Ties on IPO Performance
This paper studies the two potentially contrasting effects on IPO pricing and post-IPO operating performance of family ties as well as social ties the top management has with board members. While family ties may solve manager-owner conflicts of...Read more
Bonus Schemes and Trading Activity
Little is known about how different bonus schemes affect traders' propensity to trade and which bonus schemes improve traders' performance. We study the effects of linear versus threshold (convex) bonus schemes on traders' behavior...Read more
Overconfidence, Effort, and Investment
The theoretical finance literature predicts that overconfident managers overinvest in risky projects and exert more effort to learn about potentially value-enhancing projects in comparison with their unbiased peers. We test this prediction...Read more
Say Pays! Shareholder Voice and Firm Performance
This paper estimates the effects of Say-on-Pay (SoP); a policy that increases shareholder ?voice? by providing shareholders with a regular vote on executive pay. We apply a regression discontinuity design to the votes on shareholder-sponsored SoP...Read more
Do independent director departures predict future bad events?
Following surprise independent director departures, affected firms have worse stock and
operating performance, are more likely to restate earnings, face shareholder litigation,
suffer from an extreme negative return event, and make...Read more
