Shareholder Value

Working Paper

13 April 2021

The EU Sustainable Governance Consultation and the Missing Link to Soft Law

In this paper, we investigate whether reform of EU company law is needed to make corporate governance more sustainable through an analysis of some of the key questions found in the European Commission’s questionnaire in its public...

Guido Ferrarini | Michele Siri | Shanshan Zhu
10 March 2017

Activism, Strategic Trading, and Liquidity

We analyze dynamic trading by an activist investor who can expend costly effort to affect firm value. We obtain the equilibrium in closed form for a general activism technology, including both binary and continuous outcomes. Variation...

Vyacheslav Fos | PIerre Collin-Dufresne | Kerry Back | Tao Li | Alexander Ljungqvist
29 January 2019

Shareholder Wealth Consequences of Insider Pledging of Company Stock as Collateral for Personal Loans

We study a wide-spread yet unexplored corporate governance phenomenon: the pledging of company stock by insiders as collateral for personal bank loans. Utilizing a regulatory change that exogenously decreases pledging, we document...

Ronald Masulis | Ying Dou | Jason Zein
30 July 2019

Is The Stock Market Biased Against Diverse Top Management Teams?

Using a novel text-based measure of top management team diversity, covering over 70,000 top executives in over 6,500 U.S. firms from 1999 to 2014, we show that analyst forecasts are systematically more pessimistic for firms with more...

Alberto Manconi | A. Emanuele Rizzo | Oliver Spalt
08 August 2019

Managerial Response to Shareholder Empowerment: Evidence from Majority Voting Legislation Changes

This paper studies how managers react to shareholder empowerment vis-à-vis governance provisions. We show that a staggered legislative change that increases noncompliance costs in the implementation of shareholder-initiated...

Vicente Cuñat | Yiqing Lü | Hong Wu