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Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity Prices
This paper analyzes the relationship between employee satisfaction and long-run stock returns. A value-weighted portfolio of the "100 Best Companies to Work For in America" earned an annualExpand
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Blockholder Trading, Market Efficiency, and Managerial Myopia
This paper analyzes how blockholders can exert governance even if they cannot intervene in a firm's operations. Blockholders have strong incentives to monitor the firm's fundamental value becauseExpand
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Sports Sentiment and Stock Returns
This paper investigates the stock market reaction to sudden changes in investor mood. Motivated by psychological evidence of a strong link between soccer outcomes and mood, we use internationalExpand
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The Real Effects of Financial Markets: The Impact of Prices on Takeovers
Using mutual fund redemptions as an instrument for price changes, we identify a strong effect of market prices on takeover activity (the "trigger effect"). An inter-quartile decrease in valuationExpand
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A Multiplicative Model of Optimal CEO Incentives in Market Equilibrium
This paper presents a unified theory of both the level and sensitivity of pay in competitive market equilibrium, by embedding a moral hazard problem into a talent assignment model. By consideringExpand
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The Link Between Job Satisfaction and Firm Value, With Implications for Corporate Social Responsibility
How are job satisfaction and firm value linked? I tackle this long-standing management question using a new methodology from finance. I study the effect on firm-level value, rather thanExpand
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Governance Through Trading and Intervention: A Theory of Multiple Blockholders
Traditional theories argue that governance is strongest under a single large blockholder, as she has high incentives to undertake value-enhancing interventions. However, most firms are held byExpand
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The Real Effects of Financial Markets
A large amount of activity in the financial sector occurs in secondary financial markets, where securities are traded among investors without capital flowing to firms. The stock market is theExpand
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Do Investment Banks Matter for M&A Returns?
We document a significant investment bank fixed effect in the announcement returns of M&A deals. The interquartile range of bank fixed effects is 1.26%, compared with a full-sample average return ofExpand
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The Real Effects of Financial Markets
A large amount of activity in the financial sector occurs in secondary financial markets, where securities are traded among investors without capital flowing to firms. The stock market is theExpand
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  • PDF