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Cost saving and the freezing of corporate pensionplans

Rauh, Joshua; Stefanescu, Irina; Zeldes, Stephen P. - 2017

Companies that freeze defined benefit pension plans save the equivalent of 13.5 percent of the long-horizon payroll of current employees. Furthermore, firms with higher prospective accruals are more likely to freeze their plans. Cost savings would not be possible in a benchmark model in which i)...

Persistent link: https://www.econbiz.de/10011864545

How investors can (and can't) create social value

Brest, Paul; Gilson, Ronald J.; Wolfson, Mark A. - 2018

Most investors have a single goal: to earn the highest financial return. These socially-neutral investors maximize their risk-adjusted returns and would not accept a lower financial return from an investment that also produced social benefits. An increasing number of socially-motivated investors...

Persistent link: https://www.econbiz.de/10011980089

Scoundrels in the C-Suite : how should the board respond when a CEO's bad behavior makes the news?

Larcker, David F.; Tayan, Brian - 2016

collection of short case studies through which we explore topics, issues, and controversies in corporate governance and executive … leadership. In each study, we take a targeted look at a specific issue that is relevant to the current debate on governance and … explain why it is so important. Larcker and Tayan are co-authors of the books Corporate Governance Matters and A Real Look at …

Persistent link: https://www.econbiz.de/10011864730

Reforming LIBOR and other financial-market benchmarks

Duffie, Darrell; Stein, Jeremy C. - 2014

We outline key steps necessary to reform the London Interbank Offered Rate (LIBOR) so as to improve its robustness to manipulation. We first discuss the role of financial benchmarks such as LIBOR in promoting over-the-counter market efficiency by improving transparency. We then describe how to...

Persistent link: https://www.econbiz.de/10011524552

Benchmarks in search markets?

Duffie, Darrell; Dworczak, Piotr; Zhu, Haoxiang - 2015

We characterize the price-transparency role of benchmarks in over-the-counter markets. A benchmark can, under conditions, raise social surplus by increasing the volume of beneficial trade, facilitating more efficient matching between dealers and customers, and reducing search costs. Although the...

Persistent link: https://www.econbiz.de/10011524569

The return expectations of institutional investors

Andonov, Aleksandar; Rauh, Joshua - 2019

Analysis of required expected return disclosures by public pension funds in individual asset classes reveals a reliance on past performance in setting return expectations. These extrapolative expectations operate through the expected risk premium and occur across all risky asset classes. Pension...

Persistent link: https://www.econbiz.de/10011976289

Actively managed funds and earnings news : evidence from trade-level data

Lee, Charles M. C.; Zhu, Christina - 2018 - Current Draft: September 2018

We use trade-level data to examine the role of actively managed funds (AMFs) in earnings news dissemination. We find AMFs are drawn to, and participate disproportionately more in, earnings announcements (EAs) that include bundled managerial guidance. When the two pieces of news are directionally...

Persistent link: https://www.econbiz.de/10011980295

Mutual funds in equilibrium

Berk, Jonathan B.; Binsbergen, Jules H. van - 2017

Historically, the literature on money management has not consistently applied the rational expectations equilibrium concept. We explain why and summarize developments in the money management literature that do apply this concept correctly. We demonstrate that the rational expectations...

Persistent link: https://www.econbiz.de/10011870107

Active managers are skilled

Berk, Jonathan B.; Binsbergen, Jules H. van - 2015

Active fund managers are skilled and, on average, have used their skill to generate about $3.2 million per year. Large cross-sectional differences in skill persist for as long as ten years. Investors recognize this skill and reward it by investing more capital in funds managed by better...

Persistent link: https://www.econbiz.de/10011862190

Spillovers inside conglomerates : incentives and capital

Duchin, Ran; Goldberg, Amir; Sosyura, Denis - 2015

in the presence of strong shareholder governance. These spillovers are associated with weaker performance and lower firm …

Persistent link: https://www.econbiz.de/10011523668