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Pay Me Later: Inside Debt and its Role in Managerial Compensation
Though widely used in executive compensation, inside debt has been almost entirely overlooked by prior work. We initiate this research by studying CEO pension arrangements in 237 large capitalizationExpand
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Of Smiles and Smirks: A Term-Structure Perspective
An extensive empirical literature in finance has documented not only the presence of anomalies in the Black-Scholes model, but also the term structures of these anomalies (for instance, the behaviorExpand
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Altering the Terms of Executive Stock Options
This paper examines the practice of resetting of the terms of previously-issued executive stock options. We identify the properties of the typical reset option, characterize the firms that have resetExpand
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On the Optimality of Resetting Executive Stock Options
Recent empirical work has documented the tendency of corporations to reset strike prices on previously-awarded executive stock option grants when declining stock prices have pushed these optionsExpand
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Cross-Country Variations in Capital Structures the Role of Bankruptcy Codes
We conduct a theoretical and empirical investigation of the impact of bankruptcy codes on firms’ capital-structure choices. In our theoretical framework, costs of financial distress are endogenouslyExpand
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A Discrete-Time Approach to Arbitrage-Free Pricing of Credit Derivatives
This paper develops a framework for modelling risky debt and valuing credit derivatives that is flexible and simple to implement, and that is, to the maximum extent possible, based on observables.Expand
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A First Course in Optimization Theory
This book, first published in 1996, introduces students to optimization theory and its use in economics and allied disciplines. The first of its three parts examines the existence of solutions toExpand
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Fee Speech: Signaling, Risk-Sharing, and the Impact of Fee Structure on Investor Welfare
The fee structure used to compensate investment advisers is central to the study of fund design, and affects investor welfare in at least three ways: (i) by influencing the portfolio-selectionExpand
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When does Strategic Debt-service Matter?
Recent work in corporate finance has suggested that strategic debt-service by equity-holders works to lower debt values and raise yield spreads substantially. We show that this is not quite correct.Expand
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