Short-termism

Pay for Short-Term Performance: Executive Compensation in Speculative Markets

We argue that the root cause behind the recent corporate scandals associated with CEO pay is the technology bubble of the latter half of the 1990s. Far from...

Short-Termism, Shareholder Payouts, and Investment in the EU

Investor-driven “short-termism” is said to harm EU public firms’ ability to invest for the long term, prompting calls for the EU to better...

Equity Vesting and Investment

This paper links the CEO’s concerns for the current stock price to reductions in real investment. We identify short-term concerns using the amount of...

The Neglected Role of Justification under Uncertainty in Corporate Governance and Finance

The big corporate governance debates nowadays concern the corporation’s time horizons, and the balance of power between shareholders and managers....

Blockholder Short-Term Incentives, Structures, and Governance

We model blockholder governance as a sequential process, from less hostile private intervention, to confrontational public intervention, and...

Corporate Short-Termism - In the Boardroom and in the Courtroom

A long-held view in corporate circles has been that furious rapid trading in stock markets has been increasing in recent decades, justifying corporate...

Stock Market Short-Termism’s Impact

Stock-market–driven short-termism is crippling the American economy, according to legal, judicial, and media analyses. Firms forgo the R&D...

The Power of the Narrative in Corporate Lawmaking

The notion of stock-market-driven short-termism relentlessly whittling away at the American economy’s foundations is widely accepted and highly...

Hedge Fund Activism and the Revision of the Shareholder Rights Directive

This paper looks at shareholder activism from the perspective of the revision of the EU Shareholder Rights Directive, which was approved by the European...

The corporate calendar and the timing of share repurchases and equity-based compensation

This study examines whether the CEO uses share repurchases to sell her equity grants at inflated stock prices, a concern regularly voiced in politics and...

Does the Stock Market Harm Investment Incentives?

Mandatory Governance Reform and Corporate Risk Management

Using the Sarbanes-Oxley Act of 2002 as a quasi-natural experiment to identify the impact of corporate governance reform on foreign exchange risk...