In this article, we develop theory regarding one set of mechanisms through which increases in the compensation of directors are transmitted throughout the director labor market. In a longitudinal study using director compensation data from 1996 to 2005, we test hypotheses about how directors’ use of social comparison processes, and reciprocity between CEOs and the board, drive up the compensa…
Multilevel modeling allows researchers to understand whether relationships between lower-level variables (e.g., individual job satisfaction and individual performance, firm capabilities and performance) change as a function of higher-order moderator variables (e.g., leadership climate, market-based conditions). We describe how to estimate such cross-level interaction effects and distill the tec…
Includes bibliographies, index and tables
Research on human capital as a source of competitive advantage has focused largely on firm employees. In this article, we argue that outside directors? general human capital can also be a source of competitive advantage. Firm performance is likely to benefit from directors? human capital?that is, their prior experience and education?because such human capital is likely to make them more effecti…
Includes bibliographies and index.
Includes bibliographies and index
Management literature offers substantial insight about many aspects of CEO-related phenomena. Whether it involves aspects of the position of CEO, personal characteristics of the CEO, or the environment in which the CEO operates, research about the CEO has yielded a number of important findings. Despite the proliferation of research regarding the CEO, we find that the literature as a whole is fr…
Includes bibliographies and index
Includes index
For decades now, venture capitalists have played a crucial role in the economy by financing high-growth start-ups. While the companies they’ve backed—Amazon, Apple, Facebook, Google, and more—are constantly in the headlines, very little is known about what VCs actually do and how they create value. To pull the curtain back, Paul Gompers of Harvard Business School, Will Gornall of the Saud…
Includes bibliographies and index
Includes bibliographies and index
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The binomial asset pricing model provides a powerful tool to understand arbitrage pricing theory and probability theory. In this course, we shall use it for both these purposes. In the binomial asset pricing model, we model stock prices in discrete time, assuming that at each step, the stock price will change to one of two possible values. Let us begin with an initial positive stock price S0. T…
Includes bibliographies and index
Includes bibliographies, index and tables
Includes bibliographies, index and tables.
Includes bibliographies, index and tables
Includes bibliographies, index and tables