Does activist investors’ focus on short-term stock prices impede their role in improving corporate governance? This model builds on the notion that both the act of intervention and the threat of an intervention can generate value for the target firm. We demonstrate that an activist with short-termism intervenes excessively (insufficiently) when her ability to conduct a value-enhancing intervent...

We investigate the timing of open market share repurchases and the resultant impact on firm liquidity. Using Hong Kong’s unique disclosure environment, we identify the exact implementation dates for over 5,000 equity buybacks. We find that managers exhibit substantial timing ability. Consistent with the information-asymmetry hypothesis, bid-ask spreads widen and depths narrow during repurchase ...

In an environment where managers’ability to generate pro…ts changes stochastically over time, we characterize the optimal turnover policy for a …rm hiring a succession of managers. The focus is on the interaction between the compensation scheme used to incentivize the managers’e¤ort and the retention policy used to screen the managers’types and induce the desired turnover. Our key positive resu...

We examine the relation between a broad set of corporate governance factors and various measures of managerial behavior and organizational performance. Using a sample of 2,126 firms we distill 38 structural measures of corporate governance (e.g., board characteristics, stock ownership, anti-takeover variables etc.) to 13 governance factors using principal components analysis. For a wide set of ...

This paper describes an empirical study of the dynamics of consumer switching behavior across major Internet portal Websites. The study methodology is based on a multinomial Logit-Markov model framework that characterizes consumer switching-behavior. We propose a tractable Maximum Likelihood procedure to estimate the switching model’s parameters on the basis of online panel data. This empirical...

This paper studies financial policy, investment decisions and the threat of dismissal when managers value control and investments generate manager-specific value. A high probability of investigation focuses the manager on the profitability of replacement and therefore managerspecific value. The probability of an investigation increases when the firm enters bankruptcy. Thus, high debt levels foc...

We describe, in this paper, a component-based software engineering method for helping development teams to plan, organize, control, and develop web applications. The method is described in terms of three methodological elements: a product model that captures the architectural characteristics of web applications, a team model that describes the different roles to be played by the members of a te...

We examine the role of managerial talent and its interaction with practices in determining firm performance. build a matched firm-director panel dataset for universe limited liability companies Italy, tracking individuals across different firms over time. define as management's capacity to boost firms' total factor productivity, estimated using two-way fixed effects model. Combining data survey...

‘Quasirationality’ (i.e., the combination of intuitive and analytic thought) is increasingly considered to be widespread and beneficial in management. This paper provides an overview of this concept as it is defined by Cognitive Continuum Theory (Hammond, 1996, 2000), and highlights the relevance of the theory for studying managerial judgment and decision making. According to Cognitive Continuu...