Extensive discuddions on the inefficiences of " short-termism" in executive compensation notwithstanding, little is known empirically about the extent of suxh short-termism..Printed Journal
We examine whether a firm?s debt maturity structure affects its credit quality. Consistent with theory, we find that firms with greater exposure to rollover risk (measured by the amount of long-term debt payable within a year relative to assets) have lower credit quality; long-term bonds issued by those firms trade at higher yield spreads, indicating that bond market investors are cognizant of …
We examine corporate governance effectiveness when the CEO generates project ideas and the board of directors screens these ideas for approval, However, the precision of the board's screening information is controlled buy the CEO. Moreover, both the CEO and the board have career concerns that interaction. The board's career concerns cause it to distort its investment recommendation procyclicall…