Working Paper

01 April 2014

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...

Salim Chahine | Marc Goergen
01 July 2014

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...

Alex Edmans | Lucius Li | Chendi Zhang
01 August 2016

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...

Merritt Fox | Ronald Gilson | Darius Palia
01 February 2015

Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis

We study the extent to which a firm's social capital, as measured by the intensity of a firm's corporate social responsibility (CSR) activities, affects firm performance during the 2008-2009 financial crisis. We find that high-CSR...

Karl Lins | Henri Servaes | Ane Tamayo