Performance
Working Paper
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
Limited managerial attention and corporate aging
As firms have more assets in place, more of management?s limited attention is focused on managing assets in place rather than developing new growth options. Consequently, as firms grow older, they have fewer growth options and a lower ability to...Read more
Do Managers Manipulate Earnings Prior to Management Buyouts?
To address the question as to whether managers manipulate accounting numbers
downwards prior to management buyouts (MBOs), we implement an industry-adjusted
buyout-specific approach and receive an affirmative answer. In UK buyout...Read more
The Performance of Secondary Buyouts
Buyout funds increasingly sell their portfolio companies to other buyout funds. These secondary buyouts (SBOs) underperform primary buyouts. Yet, only SBOs made late in the investment period underperform, consistent with funds using SBOs to...Read more
Top Management Ties with Board Members: How They Affect Pay-Performance Sensitivity and IPO Performance
This paper is the first study on the effects of pay-performance sensitivity (PPS) on the
performance of initial public offerings (IPOs) in the presence of social ties and family ties
of the top managers with board members. We find...Read more
Employee Satisfaction, Labor Market Flexibility, and Stock Returns Around the World
We study the relationship between employee satisfaction and stock returns across 30 countries. Employee satisfaction is associated with superior long-run returns in flexible labor markets, such as the US and UK, but not rigid labor markets, such...Read more
Corporate Governance Changes As a Signal: Contextualizing the Performance Link
Promoting ?good? corporate governance has become an important concern. One result has been the creation of indexes that purport to measure the quality of a firm?s corporate governance structure. Prior scholarship reports a positive relationship...Read more