Working Papers

The Rock Center for Corporate Governance working paper series provides drafts of authoritative research by all Stanford University faculty members on corporate governance and leadership topics.

The Arthur and Toni Rembe Rock Center for Corporate Governance is a joint initiative of Stanford Law School and Stanford GSB.

David F. Larcker, Edward M. Watts
February 22, 2019

This study investigates whether investors are willing to trade-off wealth for societal benefits. We take advantage of unique institutional features of the municipal securities market to provide insight into this...

David F. Larcker, Charles McClure, Christina Zhu
February 11, 2019

We examine the selection of peer groups that boards of directors use when setting the level of CEO compensation. This choice is controversial because it is difficult to ascertain whether...

Ian D. Gow, David F. Larcker, Anastasia A. Zakolyukina
January 3, 2019

We construct a novel measure of disclosure choice by firms. Our measure uses linguistic analysis of conference calls to flag a manager’s response as providing an explicit “non-answer” to an...

Ed deHaan, David F. Larcker, Charles McClure
October 3, 2018

We examine the long-term effects of interventions by activist hedge funds. Prior papers document positive equal-weighted long-term returns and operating performance improvements following activist interventions, and typically conclude that activism...

Alan D. Jagolinzer, David F. Larcker, Gaizka Ormazabal, Daniel J. Taylor
September 2016

This paper examines the relation between political connections and informed trading by corporate insiders in the context of the Financial Crisis. The unprecedented magnitude of government intervention, the substantial impact...

Ian D. Gow, Steven N. Kaplan, David F. Larcker, Anastasia A. Zakolyukina
July 6, 2016

Based on two samples of high quality personality data for chief executive officers (CEOs), we use linguistic features extracted from conferences calls and statistical learning techniques to develop a measure...

Christopher S. Armstrong, Christopher D. Ittner, David F. Larcker
April 17, 2014

Performance appraisal is one of the cornerstones of management control systems. Although this topic has been the subject of considerable prior research, most of this work is based on a...

David F. Larcker, Christopher Armstrong, Alan Jagolinzer
February 15, 2010

This study examines the use of performance-based incentives for internal monitors (general counsel and chief internal auditor) and whether these incentives impair monitors independence by aligning their interests with the...