Publications

This study investigates the relation between corporate governance and CEO pay levels, and the extent to which the higher pay found in firms using compensation consultants is related to governance differences. Using proxy statement disclosures…

The present research explores a self‐control operation, namely, counteractive construal, that helps consumers resolve the conflicts between an important goal and a short‐term temptation by altering the construal of the temptation. We propose that…

We estimate classification models of deceptive discussions during quarterly earnings conference calls. Using data on subsequent financial restatements (and a set of criteria to identify especially serious accounting problems), we label the…

People feel, think, and act differently when doubt rather than confidence is accessible. A traditional perspective

on the accessibility of doubt holds that multiple sources of doubt activation should lead to

increased levels of…

To many, the principal–agent model is the obvious lens through which executive pay should be viewed. Such a sentiment sits uncomfortably with a large number of empirical studies suggesting that the process of determining executive pay seems to be…

We investigate firms’ operating performance subsequent to the repricing of executive and non-executive employee stock options. We find that, relative to non-repricers, repricing firms have a larger increase in operating income and cash flows in…

The two major paradigms in the theoretical agency literature are moral hazard (i.e., hidden action) and adverse selection (i.e., hidden information). Prior research typically solves these problems in isolation, as opposed to simultaneously…

Entrepreneurship is risky. Most new technologies and new businesses fail. Shane (2008) reported that 25% of new businesses failed in the first year and that by the fifth year, fewer than half had survived. In the United Kingdom, Stark (2001)…

For an all-pay sealed-bid auction of an item for which each bidder’s realized value can depend on every bidder’s privately observed signal, existence of equilibria in behavioral strategies is established using only the assumption that bidders’…

For two symmetric bidders, weak monotonicity conditions are shown to imply existence of an equilibrium in mixed behavioral strategies for a sealed-bid first-price auction of an item for which each bidder’s value depends on every bidder’s observed…

A first-price sealed-bid auction of an item for which bidders are risk-neutral and have privately known values is shown to have an equilibrium in mixed behavioral strategies if the joint distribution of bidders’ values has a continuous density on…

Two single-product firms with different quality levels and fixed limited capacities engage in sequential price competition in an essentially deterministic model where customers have heterogeneous valuations for both products. We develop…

Increased liking of one’s choice following difficult decisions (e.g., choosing between similarly attractive options) is well documented. Given the common mechanism proposed for this effect—a highly involving dissonance reduction process—it would…

This Article examines whether the cost of complying with the Sarbanes-Oxley Act of 2002 (SOX) contributed to the rise in going-private transactions after its enactment. Prior studies of this issue generally suffer from a mistaken assumption that…

The financial crisis that began in 2007 is especially a crisis in debt markets. A full understanding of what happened in the financial crisis requires investigation into the plumbing of debt markets. During a financial crisis, when funds often…