Corporate Philanthropy Inspires Trust: Does It Also Prompt Higher Profits?
Your mother probably told you that it pays to be nice, but that may not necessarily be true when it comes to corporate philanthropy. Wharton finance professor Vinay B. Nair and two other researchers looked at whether being charitable — such as donating money to medical research or to organizations that promote economic self-sufficiency — helps a company’s financial picture. The answer: It all depends … [ Read more ]
Content: Article | Authors: Geoffrey Heal, Raymond Fisman, Vinay B. Nair | Source: Knowledge@Wharton | Subject: Social Responsibility (ESG)
CEO Skill and Excessive Pay: A Breakdown in Corporate Governance?
A high salary doesn’t necessarily mean that a CEO is more competent than his or her peers, say researchers. And the pattern of job effectiveness not matching pay levels seems to affect more CEOs of large firms than small ones.
Content: Article | Authors: Lewis Kornhauser, Robert Daines, Vinay B. Nair | Source: Stanford University | Subject: Corporate Governance
Governance Mechanisms and Equity Prices (.pdf)
Internal and external monitoring have a strong complementary (synergistic) effect. That is the finding of Cremers and Nair who show that firms with both strong internal as well as external controls tend to outperform firms without the strong controls. To test this, the authors construct various portfolios and find that those firms who measure high on both categories outperform others in the sample. … [ Read more ]
Content: Article | Authors: K.J. Martijn Cremers, Vinay B. Nair | Source: Social Science Research Network (SSRN) | Subjects: Finance, Industry Specific | Industry: Investment Banking