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The Hidden Cost of Managerial Incentives: Evidence from the Bond and Stock Markets
16 references·2 citing·30 second hop
The Hidden Cost of Managerial Incentives: Evidence from the Bond and Stock Markets (2004)The Hidden Cost of Managerial Incentives:…Theory of rational option pricing (2005)Theory of rational option pri…Managerial incentives and risk-taking☆ (2005)Managerial incentives and ris…Asset pricing with liquidity risk (2005)Asset pricing with liquidity …Liquidity Risk and Expected Stock Returns (2003)Liquidity Risk and Expected S…The Determinants of Credit Spread Changes (2001)The Determinants of Credit Sp…Conditional Skewness in Asset Pricing Tests (2000)Conditional Skewness in Asset…On Persistence in Mutual Fund Performance (1997)On Persistence in Mutual Fund…Size and Book-to-Market Factors in Earnings and Returns (1995)Size and Book-to-Market Facto…Performance Pay and Top-Management Incentives (1990)Performance Pay and Top-Manag…Asset pricing and the bid-ask spread (1986)Asset pricing and the bid-ask…The Determinants of Firms' Hedging Policies (1985)The Determinants of Firms' He…Risk measurement when shares are subject to infrequent trading (1979)Risk measurement when shares …Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)Theory of the firm: Manageria…ON THE PRICING OF CORPORATE DEBT: THE RISK STRUCTURE OF INTEREST RATES* (1974)ON THE PRICING OF CORPORATE D…Theory of Rational Option Pricing (1973)Theory of Rational Option Pri…Risk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…Lender Monitoring and the Efficacy of Managerial Risk-Taking Incentives (2020)Lender Monitoring and the Eff…Managerial risk incentives and accounting conservatism (2018)Managerial risk incentives an…EFFICIENT CAPITAL MARKETS: A REVIEW OF THEORY AND EMPIRICAL WORK* (1970)A Closed-Form Solution for Options with Stochastic Volatility with Applications to Bond and Currency Options (1993)The relationship between return and market value of common stocks (1981)The theory and practice of econometrics (1986)Investor Sentiment and the Cross‐Section of Stock Returns (2006)CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Behavior of Stock-Market Prices (1965)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)The Cost of Capital, Corporation Finance and the Theory of Investment (1958)The Pricing of Options and Corporate Liabilities (1973)Option pricing when underlying stock returns are discontinuous (1976)The valuation of options for alternative stochastic processes (1976)An equilibrium characterization of the term structure (1977)Common risk factors in the returns on stocks and bonds (1993)Multifactor Explanations of Asset Pricing Anomalies (1996)A five-factor asset pricing model (2014)An Intertemporal Capital Asset Pricing Model (1973)The Cross-Section of Expected Stock Returns (1992)Industry costs of equity (1997)The Nature of the Firm (1937)Separation of Ownership and Control (1983)Corporate financing and investment decisions when firms have information that investors do not have (1984)Law and Finance (1998)Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency (1993)Illiquidity and stock returns: cross-section and time-series effects (2002)Market Liquidity and Funding Liquidity (2008)Option pricing: A simplified approach (1979)The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems (1993)Higher market valuation of companies with a small board of directors (1996)A Survey of Corporate Governance (1997)
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References

  • 1976Theory of the firm: Managerial behavior, agency costs and ownership structure71,441 cited
  • 1997On Persistence in Mutual Fund Performance17,267 cited
  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 1974ON THE PRICING OF CORPORATE DEBT: THE RISK STRUCTURE OF INTEREST RATES*10,779 cited
  • 1973Theory of Rational Option Pricing8,060 cited
  • 2005Theory of rational option pricing7,161 cited
  • 2003Liquidity Risk and Expected Stock Returns5,362 cited
  • 1986Asset pricing and the bid-ask spread5,087 cited
  • 1990Performance Pay and Top-Management Incentives5,080 cited
  • 1995Size and Book-to-Market Factors in Earnings and Returns3,456 cited
  • 1985The Determinants of Firms' Hedging Policies3,270 cited
  • 2005Managerial incentives and risk-taking☆2,924 cited
  • 2000Conditional Skewness in Asset Pricing Tests2,837 cited
  • 2005Asset pricing with liquidity risk2,816 cited
  • 1979Risk measurement when shares are subject to infrequent trading2,767 cited
  • 2001The Determinants of Credit Spread Changes2,253 cited

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  • 2018Managerial risk incentives and accounting conservatism31 cited
  • 2020Lender Monitoring and the Efficacy of Managerial Risk-Taking Incentives23 cited