Viral V. Acharya, Stewart C. Myers, and Raghuram G. Rajan

The common view of the public corporation is that of an organization run by top managers, and monitored by a board of directors on behalf of public shareholders. The separation of decision management (the CEO) from decision control (the board) and from risk-bearing constituents (public shareholders) is thought of as a reasonable way to structure firms, and so long as decisions are made in … [ Read more ]

Viral V. Acharya, Stewart C. Myers, and Raghuram G. Rajan

The traditional description of the firm – an organization run by top managers and monitored by a board of directors on behalf of public shareholders – falls short on three counts. First, control need not be exerted just top down, or from outside, it can also be asserted bottom-up. Put differently, the CEO has to give his subordinates a reason to follow, and this, implicitly, … [ Read more ]

Keeping the CEO in Line

Wayward chiefs are often brought to heel by the complex dynamics inherent in their companies’ structure, a phenomenon that can be called internal (rather than corporate) governance.

Bad Behavior

Even ordinary people are prone to shocking ethical lapses. As the empirical study of ethics has surged in the past two decades, clear evidence has emerged that ethical thinking and behavior are prone to many of the same mental processes and pitfalls as the rest of human thinking and behavior. Just as we humans are prone to systematic and predictable cognitive errors, we appear to … [ Read more ]

Professor Aswath Damodaran’s Data Page

For the last two decades, Aswath Damodaran has dedicated the first two weeks of each new year to a ritual. He obtains/collects/downloads data on all publicly traded companies listed globally, using a variety of data sources, and then analyzes and presents the data, aggregated at a number of different levels: by country, by region (US, Europe, Emerging Markets, Japan, Australia & Canada) and by industry. … [ Read more ]

The Cash Flow, Return & Risk Characteristics of Private Equity

*** Abstract ***
Using a unique dataset of private equity funds over the last two decades, this paper analyzes the cash flow, return, and risk characteristics of private equity. Unlike previous studies, we have detailed cash flow data for each fund, rather than aggregate or accounting returns. We also know the exact timing of investments and capital returns to investors and the number and types … [ Read more ]

Stern Case Interviewing Workshop

Presented by Professor Charles Fombrun and Peter Eliopoulos of the Stern School of Business at New York University, a page dedicated to that devilish but unavoidable Case Interview

The Stern Journal

Written by Stern MBAs, a research publication devoted to showcasing the distinct perspectives and strengths of the MBA candidate on the compelling business issues of the day.