Agency Problem Set
International Presentation
Mentoring program for students interested in accounting, business, consulting, or finance.
Case Studies
Case 01 - HP Performance Pay
Case 02 - Safelite Auto Glass
Case 03 - Gerstner's Pay Package
Case 04 - Hurd's Severance Package
Case 05 - Apple Option Backdating
Case 06 - Apple and Google Overlapping Directors
Case 07 - HP
Case 08 - Takeovers
Case 09 - Waste Management
Lectures
Executive Compensation 1
Executive Compensation 2
Board of Directors 1
Board of Directors 2
Takeovers - Notes from Tirole (2006). The Theory of Corporate Finance.
Performance
International Governance Presentations
Singapore - Hanh and Thu N.
Japan - Nhung and Xinyang
Germany - Lu and Bobo
Japan - Michelle and Jianxiao
Germany - Yen Ping and Yuanmei
China - Jingtao and Weisiyu
Sweden - Tea and Thu Q.
UK - Yan and Jamyang
Germany - Anna and Alba
Greece - Margaret and Allyson
Reading List
Highlighted items are required reading. For many items, you will need to log in with the credentials given in class. Books and Websites
- Harvard Law Corporate Governance Blog
- New York Times Dealbook
- Personnel Economics by Edward Lazear
- Pay Without Performance by Bebchuk and Fried.
- Apple Inc. Corporate Bylaws
- American Bar Foundation. Model Business Corporation Act. (2006) pp. 861
- Demski. Corporate conflicts of interest. Journal of Economic Perspectives (2003) vol. 17 (2) pp. 51-72
- Shleifer and Vishny. A Survey of Corporate Governance. Journal of Finance (1997) vol. 52 (2) pp. 737-740
- Op. Ed. U.S. Corporate Governance Today: A Reshaping of Capitalism
- Adam Liptak. Justices, 5-4, Reject Corporate Spending Limit. The New York Times (2010).
- Op. Ed. Supreme Court’s campaign ruling: a bad day for democracy. The Christian Science Monitor (2010).
- Anthony Dick. Defending Citizens United. National Review Online (2010).
- The Supreme Court of the United States. Citizens United v. Federal Election Commission. (2010).
- Friedman. The Social Responsibility of Business is to Increase its Profits. The New York Times Magazine (1970).
- Fama. Agency Problems and the Theory of the Firm. Journal of Political Economy (1980) vol. 88 (2) pp. 288-307
- Shleifer and Vishny. A Survey of Corporate Governance. Journal of Finance (1997) vol. 52 (2) pp. 740-748
- Baker. Incentive Contracts and Performance Measurement. Journal of Political Economy (1992) vol. 100 (3) pp. 598-614
- Kohn. Why Incentive Plans Cannot Work. Harvard Business Review (1993)
- Baker et al. Compensation and Incentives: Practice vs. Theory. Journal of Finance (1988) vol. 43 (3) pp. 593-616
- Murphy. Executive Compensation. SSRN (1999)
- Holmstrom. Moral Hazard and Observability. The Bell Journal of Economics (1979) vol. 10 (1) pp. 74-91
- Holmstrom. Moral Hazard in Teams. The Bell Journal of Economics (1982) vol. 13 (2) pp. 324-326
- Laffont and Rochet. Collusion in Organizations. Scandinavian Journal of Economics (1997) vol. 99 (4) pp. 485-495
- Tirole. Hierarchies and Bureaucracies: On the Role of Collusion in Organizations. Journal of Law, Economics, & Organization (1986) vol. 2 (2) Sections 1,2,5
- Aggarwal and Samwick. The Other Side of the Trade-Off: The Impact of Risk on Executive Compensation. Journal of Political Economy (1999) vol. 107 (1) pp. 65-105
- Bertrand and Mullainathan. Are CEOS Rewarded for Luck? The Ones without Principals Are. Quarterly Journal of Economics (2001) vol. 116 (3) pp. 901-932
- Bertrand and Mullainathan. Enjoying the quiet life? Corporate governance and managerial preferences. Journal of Political Economy (2003) vol. 111 (5) pp. 1043-1075
- Gabaix and Landier. Why Has CEO Pay Increased So Much?. The Quarterly Journal of Economics (2008) vol. 123 (1) Introduction and Conclusion
- Eric Dash. Stock-Hedging Lets Bankers Skirt Efforts to Overhaul Pay. 2011. The New York Times Dealbook.
- Hall and Murphy. Optimal Exercise Prices for Executive Stock Options. The American Economic Review (2000) Vol. 90(2) pp. 209-214.
- Goldman Sachs. Goldman Sachs' Compensation Principles
- Chance et al. The 'Repricing' of Executive Stock Options. Journal of Financial Economics (2000) Vol 57 pp 129-154.
- Congressional Oversight Panel. Executive Compensation Restrictions in the Troubled Asset Relief Program. Feb 2011.
- FDIC. Proposed Rule: Incentive-Based Compensation Arrangements Feb 2011.
- Devin Leonard. Executive Pay: A Special Report. The New York Times, April 2010.
- Tonello. Assessing Pay for Performance. The Harvard Law School Forum on Corporate Governance and Financial Regulation, 2011.
- Cai and Walking. Shareholders' Say on Pay: Does it Create Value? SSRN, 2009. Sections I,II.
- Hermalin and Weisbach. Endogenously Chosen Boards of Directors and Their Monitoring of the CEO. American Economic Review (1998) vol. 88 (1) pp. Intro, I, Conclusion
- Linck et al. The Determinants of Board Structure. Journal of Financial Economics Forthcoming (2007)
- Boone et al. The determinants of corporate board size and composition: An empirical analysis. Journal of Financial Economics (2007) vol. 85 (1) pp. 66-101
- Adams et al. The Role of Boards of Directors in Corporate Governance: A Conceptual Framework & Survey. Fisher College of Business Working Paper Series (2008).
- Harris and Raviv. A Theory of Board Control and Size. Review of Financial Studies (2008) vol. 21 (4) pp. 1797-1832
- Adams and Ferreira. A Theory of Friendly Boards. Journal of Finance (2007) vol. 62 (1) pp. 217-250
- Hermalin and Weisbach. Boards of Directors As an Endogenously Determined Institution: A Survey of the Economic Literature, Economic Policy Review. Federal Reserve Bank of New York (2003) vol. 9 pp. 7-26
- Greenwood and Schor. Investor Activism and Takeovers. Journal of Financial Economics (2009) vol. 92 (3) pp. 362-375
- Martynova and Renneboog. A Century of Corporate Takeovers: What Have We Learned and Where Do We Stand? Journal of Banking and Finance (2008) vol. 32 pp. 2148-2177
- Casares Field and Karpoff. Takeover Defenses of IPO Firms. Journal of Finance (2002) vol. 57 (5) Appendix Only!
- Gates. A New Approach to Capitalism in the 21st Century. Speech, World Economic Forum (2008)
- Posner. Bill Gates on Corporate Philanthropy. The Becker-Posner Blog (2008)
- Becker. On Corporate Altruism. The Becker-Posner Blog (2008)