Working Papers

These papers are working drafts of research which often appear in final form in academic journals. The published versions may differ from the working versions provided here.

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Anat R. Admati, Peter M. DeMarzo, Martin F. Hellwig, Paul Pfleiderer
November 2017

Forthcoming in Journal of Finance

Firms’ inability to commit to future funding choices has profound consequences for capital structure dynamics. With debt in place, shareholders pervasively resist leverage reductions no matter how much such reductions...

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 of this intervention on firm...

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 of CEO personality in terms...

David F. Larcker, Brian Tayan
April 12, 2016

Keller Williams is one of the most successful real estate franchises in the world. The leaders of the company attribute its growth in large part to a cultural model that emphasizes profit sharing, interdependence, and...

David F. Larcker, Nicholas E. Donatiello, Brian Tayan
March 3, 2016

CEO compensation is a highly controversial subject. While most company directors believe that CEO pay is not a problem, the majority of the American public believes that it is. The difficulties that boards face in...

Ian D. Gow, David F. Larcker, Peter C. Reiss
February 8, 2016

This paper examines the approaches accounting researchers use to draw causal inferences using observational (or non-experimental) data. The vast majority of accounting research papers draw causal inferences notwithstanding the well-known difficulties in doing so. While...

David F. Larcker, Peter C. Reiss, Youfei Xiao
November 1, 2015

Researchers in accounting, corporate finance, economics, and law regularly evaluate the impact of corporate governance provisions on firm performance and managerial actions. Many of these studies rely on publicly available governance summaries developed by the...

Anat R. Admati
October 20, 2015

The extreme fragility of the financial system that gives rise to systemic risk and crises is rooted in the incentives of people within this system and the failure of regulation to counter these incentives. The...

Doron Israeli, Charles M. C. Lee, Suhas A. Sridharan
July 26, 2015

In a noisy rational expectations framework with costly information, some agents expend resources to become informed, and earn a return for their efforts by trading with the uninformed. Applying this insight, we examine the proposition...

David F. Larcker, Christopher Armstrong, Jennifer Blouin, Alan D. Jagolinzer
February 25, 2015

We examine the link between corporate governance, managerial incentives, and corporate tax avoidance. Similar to other investment opportunities that involve risky expected cash flows, unresolved agency problems may lead managers to engage in more or...

Alan D. Jagolinzer, David F. Larcker, Gaizka Ormazabal, Daniel J. Taylor
August 14, 2014

This paper examines whether insiders at leading financial institutions anticipated the effect of government intervention during the Financial Crisis on their firms’ share prices. While we find no evidence that insiders anticipated the Crisis, we...

David F. Larcker, Allan McCall, Gaizka Ormazabal
June 19, 2014

Forthcoming in the Journal of Law and Economics.

This paper examines changes in executive compensation programs made by firms in response to proxy advisory firm say-on-pay voting policies. Using proprietary models, proxy advisory firms, primarily...

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 single observation per firm or...

Charles A. O’Reilly, Brian G.M. Main

The central argument for increasing the number of women on corporate boards of directors has been the so-called business case for diversity which proposes that women and minorities add valuable new perspectives that result in...

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 interests of those being monitored....