Working Paper

ESG Shareholder Engagement and Downside Risk

We examine whether engagement on environmental, social and governance (ESG) issues can benefit shareholders by reducing firms’ downside risk, measured using the lower partial moment and value at risk. Using a proprietary database, we provide...Read more

Andreas G.F. Hoepner
Ioannis Oikonomou
Zacharias Sautner
Laura Starks
Xiao Y. Zhou
16 April 2020

Institutional Investors’ Views and Preferences on Climate Risk Disclosure

Surveying institutional investors on portfolio firms’ climate risk disclosures, we find that many think climate risk reporting to be as important as traditional financial reporting and that it should be mandatory and more standardized. We find...Read more

Emirhan Ilhan
Philipp Krueger
Zacharias Sautner
Laura Starks
20 February 2020

Mobility Restrictions and Risk-Related Agency Conflicts: Evidence from a Quasi-Natural Experiment

Stricter enforcement of manager post-employment restrictions that strengthen trade secrets protections also limits managers’ ability to accept better employment opportunities. We find that heightened managerial career concerns due to these...Read more

Emdad Islam
Ronald Masulis
Lubna Rahman
05 March 2020

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

We study how the existence of important production contracts affects the choice of CEO compensation contracts. We hypothesize that having major customers raises the costs associated with CEO risk-taking incentives and leads to lower option-based...Read more

Claire Yang Liu
Ronald Masulis
Jared Stanfield
22 September 2017