• Publications
  • Influence
Shareholders' Say on Pay: Does it Create Value?
Congress and activists recently proposed giving shareholders a say (vote) on executive pay. We find that when the House passed the Say-on-Pay Bill, the market reaction was significantly positive forExpand
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Leverage change, debt overhang, and stock prices
We document a significant and negative effect of the change in a firm's leverage ratio on its stock prices. We find that the negative effect is stronger for firms that have higher leverage ratios,Expand
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Anticipation, Acquisitions and Bidder Returns: Industry Shocks and the Transfer of Information Across Rivals
We document market anticipation of merger bids and show that less anticipated bids earn significantly higher announcement returns. Subsequent bidders in the industry experience significant andExpand
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What's in the News? Information Content of S&P 500 Additions
I investigate the information content of S&P 500 index changes by examining the price and volume reaction of the industry and size matched firms. Using a sample of S&P 500 additions betweenExpand
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Incentive Effects of Stock and Option Holdings of Target and Acquirer CEOs
Acquisitions enable target chief executive officers (CEOs) to remove liquidity restrictions on stock and option holdings and diminish the illiquidity discount. Acquisitions also enable acquirer CEOsExpand
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Information Asymmetry and Corporate Governance
We examine the impact of a firm’s asymmetric information on its choice of three mechanisms of corporate governance: The intensity of board monitoring, the exposure to market discipline, and CEOExpand
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Executive Stock and Option Valuation in a Two State-Variable Framework
Much has been written about how executive stock options should be valued. The options themselves are not that complicated, but they have a variety of special features that make valuing themExpand
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Stock option grants to target CEOs during private merger negotiations
Unscheduled stock options to target chief executive officers (CEOs) are a nontrivial phenomenon during private merger negotiations. In 920 acquisition bids during 1999-2007, over 13% of targets grantExpand
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Incentive Effects of Illiquid Stock and Option Holdings of Target and Acquirer CEOS
Due to a variety of liquidity constraints, CEOs of U.S. corporations hold highly undiversified portfolios of stock and options of their own firms. This results in an illiquidity discount, measured byExpand
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A Paper Tiger? An Empirical Analysis of Majority Voting
Majority voting in board elections has emerged as a dominant theme in recent proxy seasons. Analysis of majority voting is important: first, the impact is controversial yet scant empirical evidenceExpand
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