Corporate Governance

CEOs strategically time news releases for their own benefit

More and more firms seek to set long-term incentives for their managers. One way to do so is to restrict executives from selling stock and options for a certain period, typically three years. When such stock and options finally become available (“vesting”), many executives are eager to sell.

One easy way to boost short-term stock prices is to release news. Even […]

CEO pay packages are based on old, out-of-date assumptions

According to the popular French economist Thomas Piketty, one of the main factors contributing to the growing inequality in the western world is inflated rates of executive pay.

Whilst executive pay is frequently the subject of furious political and ethical debate, it too remains a difficult topic for the organisations employing top managers. Despite the fact that it would certainly […]

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    Good corporate social performance may lead to higher credit ratings

Good corporate social performance may lead to higher credit ratings

Does corporate social responsibility (CSR) or Corporate Social Performance (CSP) really pay off or is it just a waste of corporate resources? In our research, we empirically examine whether superior performance in CSR results in lower credit risk, measured by credit ratings and zero-volatility spreads (z-spreads).

Until now, only a limited number of studies have investigated the CSR-CFP relationship with […]

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    The state of gender representation on corporate boards around the world

The state of gender representation on corporate boards around the world

Although women have increasingly achieved equality in some domains, there are vast differences in their participation at the highest echelons of the corporate world: boards of directors. In the EU, women hold 17.8 percent of board directorships; in the US, they represent 19.2 percent of S&P 500 board directors. Recently, several countries have taken proactive steps to introduce quotas (hard law) that […]

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    Where do multinationals fit in global efforts to adapt to climate change?

Where do multinationals fit in global efforts to adapt to climate change?

Climate change is widely recognized as one of the critical global challenges on the political agenda and is not a new topic for the boardrooms of multinational corporations (MNCs) either. Ahead of the upcoming climate change summit in Paris in December governments and companies are pledging emission reduction targets and are working on new initiatives to lower their carbon […]