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Which Investors Fear Expropriation? Evidence from Investors' Stock Picking

Giannetti, Mariassunta; Simonov, Andrei - C.E.P.R. Discussion Papers - 2003

Using a data-set that provides unprecedented details on individual investors’ stockholdings, we analyse whether investors take into account corporate governance when they select stocks. After controlling for the supply effect via free float and other firm characteristics, we find that all...

Persistent link: https://www.econbiz.de/10005114455

Bonus Culture: Competitive Pay, Screening, and Multitasking

Bénabou, Roland; Tirole, Jean - C.E.P.R. Discussion Papers - 2013

This paper analyzes the impact of labor market competition and skill-biased technical change on the structure of compensation. The model combines multitasking and screening, embedded into a Hotelling-like framework. Competition for the most talented workers leads to an escalating reliance on...

Persistent link: https://www.econbiz.de/10011083769

Contracting under Incomplete Information and Social Preferences: An Experimental Study

Hoppe, Eva I; Schmitz, Patrick W - C.E.P.R. Discussion Papers - 2013

cornerstone of contract theory. We have conducted an experiment with 720 participants to explore whether the theoretical insights … are reflected by the behavior of subjects in the laboratory and to what extent deviations from standard theory can be … agency theory is indeed useful to qualitatively predict how variations in the degree of uncertainty affect subjects' behavior …

Persistent link: https://www.econbiz.de/10011084433

Gathering Information before Signing a Contract: Experimental Evidence

Hoppe, Eva I; Schmitz, Patrick W - C.E.P.R. Discussion Papers - 2009

A central insight of agency theory is that when a principal offers a contract to a privately informed agent, the … particular, we investigate settings with both exogenous and endogenous information structures. We find that theory is indeed a …

Persistent link: https://www.econbiz.de/10005789080

A Portfolio Approach to a Cross-sectoral and Cross-National Investment Strategy in Transition Economies

Buiter, Willem H.; Lago, Ricardo; Rey, Hélène - C.E.P.R. Discussion Papers - 1997

provisioning rules from the perspective of portfolio theory. …

Persistent link: https://www.econbiz.de/10005661678

Limits of Limits of Arbitrage: Theory and Evidence

Hombert, Johan; Thesmar, David - C.E.P.R. Discussion Papers - 2009

We present a model where arbitrageurs operate on an asset market that can be hit by information shocks. Before entering the market, arbitrageurs are allowed to optimize their capital structure, in order to take advantage of potential underpricing. We find that, at equilibrium, some arbitrageurs...

Persistent link: https://www.econbiz.de/10005666728

Optimal Portfolio Allocation for Corporate Pension Funds

McCarthy, David; Miles, David K - C.E.P.R. Discussion Papers - 2007

We model the asset allocation decision of a defined benefit pension fund using a stochastic dynamic programming approach. Our model recognizes the fact that asset allocation decisions are made by trustees who are mandated to act in the best interests of beneficiaries - not by sponsoring...

Persistent link: https://www.econbiz.de/10005123770

Optimal portfolio allocation for corporate pension funds

McCarthy, David; Miles, David K - C.E.P.R. Discussion Papers - 2011

We model the asset allocation decision of a stylized corporate defined benefit pension plan in the presence of hedgeable and unhedgeable risks. We assume that plan fiduciaries--who make the asset allocation decision--face non-linear payoffs linked to the plan’s funding status because of the...

Persistent link: https://www.econbiz.de/10008854488

Investor Protection and Equity-Holdings: An Explanation of Two Puzzles?

Giannetti, Mariassunta; Koskinen, Yrjö - C.E.P.R. Discussion Papers - 2003

We develop a model where wealthy investors have an incentive to become controlling shareholders because they can earn additional benefits by expropriating outside shareholders. As a consequence, in countries where minority investor rights are poorly protected, both domestic and foreign portfolio...

Persistent link: https://www.econbiz.de/10005114263

The Internal Governance of Firms

Acharya, Viral V; Myers, Stewart C; Rajan, Raghuram G - C.E.P.R. Discussion Papers - 2009

theory of investment and dividend policy, where dividends are paid by self-interested CEOs to maintain a balance between …

Persistent link: https://www.econbiz.de/10004980207