Category Archives: Corporate Governance

The Effect of Stardom on the Informativeness of a CEO’s Insider Trades

By | November 13, 2019

Courtesy of Sanjiv Sabherwal and Mohammad Uddin There are many studies on insider trading by corporate CEOs. There are also some studies that examine whether celebrity, or star CEOs, create more value for their firms and investors. However, no studies, until now, have attempted to identify whether there is a difference in the information content… Read More »

Does Board Independence Reduce Informed Short Selling Prior to Earnings Announcements? Evidence from Quasi-Natural Experiment

By | October 16, 2019

Courtesy of Suchismita Mishra, Anisur Rahman, and Arun Upadhyay In a new paper, we argue that the transparency created by independent boards prevents informed short sellers from taking advantage of nonpublic information, and thus results in a lower likelihood of surprise predictions of informed short selling prior to upcoming earnings announcements. Short sellers—those who sell… Read More »

Regulating Federal Securities Law Claims In Corporate Charters: The Dilemma Confronting Delaware

By | October 14, 2019

Courtesy of Mohsen Manesh In Sciabacucchi v. Salzberg, the Delaware Supreme Court confronts a thorny question at the intersection of state corporate law and federal securities law. Specifically, the case asks whether a Delaware corporation may include a forum selection provision in its corporate charter governing shareholder claims brought under federal securities law. But that narrow… Read More »

Can Tax Regulation Curb Excessive Executive Pay?

By | August 7, 2019

Courtesy of Tobias Bornemann, Martin Jacob, and Mariana Sailer For at least two decades, executive compensation has been widely discussed in public policy. Debates about inequality, risk-taking behavior, and excessiveness led to policy interventions – often by means of tax instruments – intending to control executive compensation. For example, back in 1993, the U.S. introduced… Read More »

Can Corporate Governance Prevent Future Financial Crises?

By | June 14, 2019

Courtesy of Dina El Mahdy  Over a decade ago, the US market and global economy experienced a financial crisis that erased $8 trillion in stock market wealth and led to unprecedent government intervention in financial markets. This crisis was preceded, less than ten years prior, by the dot-com bubble, which saw several companies fail due… Read More »