quick

Question 1

IPO value relation

Answer 1

Avg relationship between firm value and use of defenses is positive at IPO but declines and becomes neg as firm ages
1. Cost of managerial entrenchment increases
2. Benefits of stakeholder bonding decreases

Question 2

Hedge fund strategies

Answer 2

Question 3

VAlue of integrity

Answer 3

Question 4

Incentivizing Risk taking

Answer 4

ESOPs have been shown to have positive and
significant effects on productivity and performance

− Startups generally adopt ESOPs more aggressively,
international differences

Question 5

Incentivazing risk

Answer 5

Question 6

Conclusion

Answer 6

Pay is not the only incentive

− Reputation or career concerns is another, should be bigger for younger managers (pay-performance sensitivities larger for older CEOs)

− Focke et al. (2017) find that CEOs are willing to trade off status and career benefits from working for a publicly admired company against additional monetary compensation

− Executive turnover correlated with poor performance

Question 7

VAlue impliactions ESG