Working Paper

CEO Option Compensation Can Be a Bad Option: Evidence from Product Market Relationships

This paper studies how firms’ important customer relationships can affect the choice of CEO compensation structure. We hypothesize that having major customers raises the costs associated with CEO risk-taking incentives, leading to lower option-...Read more

Claire Yang Liu
Ronald Masulis
Jared Stanfield
22 September 2017

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 firms have...Read more

Henri Servaes
01 February 2015