Showing 1 - 10 of 22,738
This article proposes a practical method to accomplish a previously elusive task: measuring human capital with monetary values on the statement of financial position, such as the balance sheet.Human capital is shown to comply with the definition of a right-of-use asset, as defined in the IASB...
Persistent link: https://www.econbiz.de/10013059952
We investigate the effect of CEO hedging on the likelihood and characteristics of M&A decisions. Because of their higher degree of risk tolerance, hedged CEOs are more likely to engage in M&As and are more likely to acquire private and smaller targets. M&A deals by hedged CEOs appear to create...
Persistent link: https://www.econbiz.de/10013291356
Responding to the financial crisis of 2008, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) to “provide for financial regulatory reform” and to “protect consumers and investors[.]” Section 951 of the Dodd-Frank Act (“Section 951”)...
Persistent link: https://www.econbiz.de/10012963793
Many investors purchase open-end mutual funds through intermediaries, paying brokers and financial advisors for fund distribution and advice via alternative sale charge fee structures. We argue that the fee structure choice reveals valuable information about investors horizon. That allows...
Persistent link: https://www.econbiz.de/10012849867
We develop a measurement-error framework for assessing the quality of relative-performance metrics designed to filter out the systematic component of performance, and analyze relative total shareholder return (rTSR)-the predominant metric market participants use to isolate managers'...
Persistent link: https://www.econbiz.de/10012064869
The overall market for derivative securities is often estimated as more than ten times the World's GDP and many decry the complexity of derivatives as a main contributor to the subprime financial crisis. In this paper, we investigate whether and why complexity is used as a proxy for risk when...
Persistent link: https://www.econbiz.de/10012837576
Does textual complexity affect attention and market outcomes? I conduct a global field experiment with Seeking Alpha that randomly assigns to investors different titles for the same news article. Investors are less likely to open the articles when titles are more complex---scored quantitatively...
Persistent link: https://www.econbiz.de/10012854002
We offer evidence that the use of Relative Performance Evaluation (RPE) in CEOs' incentive contracts influences the effect of risk-taking incentives on both the magnitude and composition of firm risk. We find that when the incentive design lacks RPE features, the incentive portfolio vega...
Persistent link: https://www.econbiz.de/10013019246
We offer evidence that the use of Relative Performance Evaluation (RPE) in CEOs' incentive contracts influences the effect of risk-taking incentives on both the magnitude and composition of firm risk. We find that when the incentive design lacks RPE features, the incentive portfolio vega...
Persistent link: https://www.econbiz.de/10012997638
Persistent link: https://www.econbiz.de/10011410716