Firms’ capital structure dynamics, market competition, and industry dynamics
by Shiqi Chen, Research Associate, Cambridge Centre for Finance and Cambridge Endowment for Research in Finance Debt-equity conflict is undoubtfully one of the core paradigms of corporate finance research. It is well-known that, once debt is in place, the misalignment…
The shareholder value of stakeholder orientation
by Dr Scott B. Guernsey, Research Associate, Cambridge Centre for Finance and Cambridge Endowment for Research in Finance Dr Scott B. Guernsey Ever since Milton Friedman's celebrated 1970 article – "The Social Responsibility of Business is to Increase its Profits"…
Engaging award
Dr Oğuzhan Karakaş of Cambridge Judge wins Young Researcher award from Sabancı University School of Management in Istanbul for research on 'Coordinated Engagements'. Dr Oğuzhan Karakaş Dr Oğuzhan Karakaş, University Senior Lecturer in Finance at Cambridge Judge Business School, has…
Leadership (The Cambridge Judge Business Debate podcast series)
What is effective leadership in business and politics, and how can leadership be inclusive rather than divisive? L-R: Simon Learmount, Thomas Roulet, Michael Kitson In this episode, joining podcast host Michael Kitson, University Senior Lecturer in International Macroeconomics at Cambridge…
Shadow pills and visible value
Dr Scott B. Guernsey The "poison pill" (formally known as a "shareholder rights plan") has a long and contentious history in the United States as a tactic to deter takeovers.[1] While details can vary across different implementations, the key defensive…
Reinvesting market power for the betterment of shareholders
Dr Scott B. Guernsey On the supply side, highly competitive industries are generally characterised as having many firms and low barriers to entry. The first condition implies that existing firms cannot dictate or influence prices, and the second that new…
What motivates a firm to manipulate earnings?
A strong CEO and an increase in institutional shareholding both play a role in the likelihood of earnings manipulation, linked to beating analyst forecasts, says study co-authored at Cambridge Judge Business School. The power of a company's CEO plays a…
Shareholder activism
Paper co-authored at Cambridge Judge finds that institutional shareholders recall shares to oppose management in proxy votes. Institutional investors often recall loaned shares prior to proxy votes when they want to express lack of support for management, according to research…
Education Times: Are CEOs underpaid?
A large body of research, and many politicians and leaders, argue that executive compensation is excessive. But, without a measure of their perceived contribution to shareholder value, a true assessment is difficult. Research by Dr Bang Dang Nguyen into CEO…
Yahoo! News Spain: How sudden death of CEO impacts company’s stock market
The report links the stock market reaction to executive pay, calculating gain or loss if the value of the firms after a death may be related to whether those managers charged in excess or below what I deserved. On research…