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Managerial Power and Rent Extraction in the Design of Executive Compensation

Bebchuk, Lucian Arye; Fried, Jesse; Walker, David I - C.E.P.R. Discussion Papers - 2002

constraints that act on these processes, leave managers with considerable power to shape their own pay arrangements. Examining the …

Persistent link: https://www.econbiz.de/10005114260

On discrimination in procurement auctions

Jehiel, Philippe; Lamy, Laurent - C.E.P.R. Discussion Papers - 2014

With exogenous participation, strong bidders should be discriminated against weak bidders to maximize revenues (Myerson 1981). When participation is endogenous and the set of potential entrants is large, optimal discrimination if any takes a very different form. Without incumbents, there should...

Persistent link: https://www.econbiz.de/10011084599

Social Connections and Incentives in the Workplace: Evidence from Personnel Data

Bandiera, Oriana; Barankay, Iwan; Rasul, Imran - C.E.P.R. Discussion Papers - 2009

We present evidence on the effect of social connections between workers and managers on productivity in the workplace … workers managed. We find that when managers are paid fixed wages, they favor workers to whom they are socially connected …

Persistent link: https://www.econbiz.de/10005791992

Local Ownership as Private Information: Evidence on the Monitoring-Liquidity Trade-Off

Gaspar, José-Miguel; Massa, Massimo - C.E.P.R. Discussion Papers - 2004

This Paper investigates the impact of ownership patterns on the way the firm is monitored, on the liquidity of its shares, and on its stock price. Building on the literature showing that local mutual funds (funds holding geographically close firms) enjoy superior returns due to private...

Persistent link: https://www.econbiz.de/10005497985

Scale and Skill in Active Management

Pástor, Luboš; Stambaugh, Robert F.; Taylor, Lucian - C.E.P.R. Discussion Papers - 2014

We empirically analyze the nature of returns to scale in active mutual fund management. We find strong evidence of decreasing returns at the industry level: As the size of the active mutual fund industry increases, a fund's ability to outperform passive benchmarks declines. At the fund level,...

Persistent link: https://www.econbiz.de/10011083369

Why Do Institutional Investors Chase Return Trends?

Alt, Aydogan; Kaniel, Ron; Yoeli, Uzi - C.E.P.R. Discussion Papers - 2012

We propose and test a simple explanation for institutional investors’ tendency to chase return trends. When investors face uncertainty about the precision of their private information, they wait for subsequent confirming news before establishing stock positions. While such news impact the...

Persistent link: https://www.econbiz.de/10011083728

Do Funds Make More When They Trade More?

Pastor, Lubos; Stambaugh, Robert F.; Taylor, Lucian - C.E.P.R. Discussion Papers - 2014

We find that active mutual funds perform better after trading more. This time-series relation between a fund’s turnover and its subsequent benchmarkadjusted return is especially strong for small, high-fee funds. These results are consistent with high-fee funds having greater skill to identify...

Persistent link: https://www.econbiz.de/10011083863

Real Effects of Stock Underpricing

Hau, Harald; Lai, Sandy - C.E.P.R. Discussion Papers - 2012

This paper provides evidence for a causal effect of equity prices on corporate investment and employment. We use fire sales by distressed equity funds during the 2007-2009 financial crisis to identify substantial exogenous underpricing. Firms whose stocks are most underpriced have considerably...

Persistent link: https://www.econbiz.de/10011084351

Local Bias and Stock Market Conditions

Giannetti, Mariassunta; Laeven, Luc - C.E.P.R. Discussion Papers - 2012

times. Additionally, we do not find that fund managers earn superior returns on local stocks during periods of heightened …

Persistent link: https://www.econbiz.de/10011084583

Time-Varying Fund Manager Skill

Kacperczyk, Marcin; van Nieuwerburgh, Stijn; Veldkamp, Laura - C.E.P.R. Discussion Papers - 2012

How to evaluate a fund manager’s skill is a central question in empirical finance. Prior literature has defined skill … in recessions. Moreover, the same fund managers that pick stocks well in expansions also time the market well in … recessions. These fund managers significantly outperform other funds and passive benchmarks. Our results suggest a new metric of …

Persistent link: https://www.econbiz.de/10011084660