210 research outputs found
Golden Handshakes: Separation Pay for Retired and Dismissed CEOs
No full textThis paper studies separation payments made when CEOs leave their firms. In a sample of 179 exiting Fortune 500 CEOs, more than half receive severance pay and the mean separation package is worth $5.4 million. The large majority of severance pay is awarded on a discretionary basis by the board of directors and not according to terms of an employment agreement. For the subset of exiting CEOs who are dismissed, separation pay generally conforms to theories related to bonding and damage control. Shareholders react negatively when separation agreements are disclosed, but only in cases of voluntary CEO turnover.CEO turnover; severance pay
Good Timing: CEO Stock Option Awards and Company News Announcements.
No full textThis article analyzes the timing of CEO stock option awards as a method of investigating corporate managers' influence over the terms of their own compensation. In a sample of 620 stock option awards to CEOs of Fortune 500 companies between 1992 and 1994, the author finds that the timing of awards coincides with favorable movements in company stock prices. Patterns of companies' quarterly earnings announcements are consistent with an interpretation that CEOs receive stock option awards shortly before favorable corporate news. The author evaluates and rejects several alternative explanations of the results, including insider trading and the manipulation of news announcement dates. Copyright 1997 by American Finance Association.
Central banks of developing nations should issue digital currency
No full textBlockchain technology and smart contracts have made certainty in monetary policy a legitimate possibility, argue Max Raskin and David Yermac
Good Timing: CEO Stock Option Awards and Company News Announcements
No full textThis paper analyzes the timing of CEO stock option awards, as a method of investigating corporate managers’ influence over the terms of their own compensation. In a sample of 620 stock option awards to CEOs of Fortune 500 companies between 1992 and 1994, I find that the timing of awards coincides with favorable movements in company stock prices. Patterns of companies’ quarterly earnings announcements are consistent with an interpretation that CEOs received stock option awards shortly before favorable corporate news. I evaluate and reject several alternative explanations of the results, including insider trading and the manipulation of news announcement dates
The Michelle Markup: The First Lady's impact on stock prices of fashion companies
No full textI analyze changes in apparel company stock prices when Michelle Obama
wears designer outfits at major events. The First Lady's selections can
create value exceeding 2.3 billion during a 2009
European trip that the media labeled a "fashion faceoff" with
her French counterpart Carla Bruni. However, firms whose clothing she
chooses not to wear see their stock prices drop, and her net impact upon
the industry amounts to a redistribution of value among firms. The First
Lady's influence on fashion firms represents a private benefit of public
office, similar to private benefits of control obtained by corporate managers
Is Bitcoin a Real Currency?
No full textAbstract: Motivated by Bitcoin’s rapid appreciation in recent weeks, I examine its historical trading behavior to see whether it behaves like a traditional sovereign currency. Bitcoin has exchange rate volatility an order of magnitude higher than the volatilities of widely used currencies, undermining Bitcoin’s usefulness as a unit of account or a store of value. Bitcoin’s daily exchange rates exhibit virtually zero correlation with bona fide currencies, making Bitcoin useless for risk management purposes and exceedingly difficult for its owners to hedge. Bitcoin also lacks access to a banking system with deposit insurance, and it is not used to denominate consumer credit or loan contracts. Bitcoin appears to behave more like a speculative investment than like a currency. Late 2013 became an auspicious time for Bitcoin, a “virtual currency ” launched five years earlier by computer hobbyists. During the month of November 2013, the U.S. Dollar exchange rate for one Bitcoin rose more than fivefold, and the value of one Bitcoin, which had begun trading at less than five cents in 2010, exceeded $1,200.00. Two days of hearings were held by the U.S. Senate Commitee on Homeland Security and Governmental Affairs, at which government regulators testified that virtual, stateless currencies like Bitcoin had the potential t
Investor Reactions to CEOs' Inside Debt Incentives
No full textPensions and deferred compensation represent substantial components of CEO incentives. We study stockholder and bondholder reactions to companies' initial reports of CEOs' inside debt positions following a 2007 SEC disclosure reform. We find that bond prices rise, equity prices fall, and the volatility of both securities drops for firms whose CEOs have sizeable defined benefit pensions or deferred compensation. Similar changes occur for credit default swap spreads and exchange-traded options. The results indicate a reduction in firm risk, a transfer of value from equity toward debt, and an overall destruction of enterprise value when CEOs' inside debt holdings are large. The Author 2011. Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved. For Permissions, please e-mail: [email protected]., Oxford University Press.
Board Members and Company Value
No full textCorporate governance, Value of board member, Stock price effect, Regulation, G34, G38,
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