CAMBRIDGE: Do markets appreciate and correctly price the corporate-governance provisions of companies? In new empirical research, Alma Cohen, Charles C.Y. Wang, and I show how stock markets have learned to price anti-takeover provisions. This (...)
CAMBRIDGE: A recent decision issued by the United States Supreme Court expanded the freedom of corporations to spend money on political campaigns and candidates — a freedom enjoyed by corporations in other countries around the world. This raises (...)
CAMBRIDGE: The United States' Federal Reserve Board recently adopted a policy under which bank supervisors, the guardians of the financial system's safety and soundness, would review the compensation structures of bank executives. Authorities (...)
CAMBRIDGE: In the new financial order being put in place by regulators around the world, reform of credit rating agencies should be a key element. Credit rating agencies, which play an important role in modern capital markets, completely failed in (...)
CAMBRIDGE: The United States Supreme court recently struck down limits on the freedom of companies to spend money on political elections. Large, publicly traded companies in other countries also often face lax limits on their use of corporate (...)
CAMBRIDGE: The United States Supreme court recently struck down limits on the freedom of companies to spend money on political elections. Large, publicly traded companies in other countries also often face lax limits on their use of corporate (...)
CAMBRIDGE: There is now intense debate about how the pay levels of top executives compare with the compensation given to rank-and-file employees. But, while such comparisons are important, the distribution of pay among top executives also deserves (...)
CAMBRIDGE: As governments around the world develop policies to deal with failing financial institutions, they should be sure to pick their beneficiaries wisely. In particular, they should study and avoid the mistakes made in the AIG bailout in late (...)
CAMBRIDGE: Executive compensation is now a central concern of company boards and government regulators. There is an aspect to this debate, however, that deserves greater scrutiny: the freedom of executives to pick the moment when they can cash out (...)
CAMBRIDGE: A year after the United States government allowed the investment bank Lehman Brothers to fail but then bailed out AIG, and after governments around the world bailed out many other banks, key question remains: when and how should (...)
CAMBRIDGE: When they met earlier this month, G-20 finance ministers and central bankers called for global improvements in corporate governance. Such appeals are often heard, but powerful vested interests make it hard for governments to follow (...)
CAMBRIDGE: Although some financial firms are reforming how they pay their employees, governments around the world are seriously considering regulating such firms' compensation structures. The Basel Committee on Banking Supervision has recently come (...)
CAMBRIDGE: The United States government is now permitting ten of America's biggest banks to repay about $70 billion of the capital injected into them last fall. This decision followed the banks having passed the so-called "stress tests of their (...)
CAMBRIDGE: Goldman Sachs announced this month plans to provide bonuses at record levels, and there are widespread expectations that bonuses and pay in many other firms will rise substantially this year. Should the good times start rolling again so (...)
CAMBRIDGE: In the wake of last year's global financial meltdown, there is now widespread recognition that inadequate investor protection can significantly affect how stock markets and economies develop, as well as how individual firms perform. The (...)