Boards of Banks
We show that country characteristics explain most of the cross-sectional variation in bank board independence. In contrast, country characteristics...
The changing role of central banks
Although Central Banks have pursued the same objectives throughout their existence, primarily price and financial stability, the interpretation of...
The Price Impact of Institutional Herding
In this paper we develop a simple theoretical model to analyze the impact of institutional herding on asset prices. A growing empirical literature has...
The Vote is Cast: The Effect of Corporate Governance on Shareholder Value
This paper estimates the effect of corporate governance provisions on shareholder value and long-term outcomes in S&P1500 firms. We apply a regression...
Executive Pay and Performance in the UK
This paper examines the relationship between executive cash compensation and company performance for a sample of large UK companies, focusing in...
Institutional Trade Persistence and Long-term Equity Returns
Recent studies show that single-quarter institutional herding positively predicts short-term returns. Motivated by the theoretical herding literature...
Some help in understanding Britain's banking crisis 2007-09
Although Britain’s banking crisis received wide coverage in the media, this did not provide the public with any clearly structured account of its...
Innovations, rents and risk
We offer a rational expectations model of the dynamics of innovative industries. The fundamental value of innovations is uncertain and one must learn...
The Optimal Timing of Executive Compensation
We propose a new continuous-time principal-agent model to study the optimal timing of stock-based incentives, when the effects of managerial actions...
Value of Information in Competitive Economies with Incomplete Markets
We study the value of information in a competitive economy in which agents trade in asset markets to reallocate risk. We characterize the kinds of...
The Future of Finance: Chapter 3
This chapter offers a new understanding of how financial markets work. The key departure from conventional theory is to recognize that investors do...
Aversion to the variability of pay and optimal incentive contracts
In a moral hazard setting with a performance additive in effort and a symmetrically distributed noise term, I show that compensation contracts which...
Signalling in Tender Offer Games
We examine whether a bidder can use tender o§er terms to signal post-takeover security benefits. Neither restricted bids nor cash-equity offers allow...