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Full-Text Articles in Business Law, Public Responsibility, and Ethics

Can Banks Placate Knowledgeable Depositors By Offering Higher Interest Rates During A Banking Crisis?, Glenn Boyle, Roger D. Stover, Amrit Tiwana, Oleksandr Zhylyevskyy Apr 2018

Can Banks Placate Knowledgeable Depositors By Offering Higher Interest Rates During A Banking Crisis?, Glenn Boyle, Roger D. Stover, Amrit Tiwana, Oleksandr Zhylyevskyy

Economics Working Papers

Using a conjoint analysis of 417 finance professionals from six countries, we find no evidence that higher interest rates cause knowledgeable depositors to moderate their withdrawals during a banking crisis. In fact, intended withdrawals are positively correlated with expected interest rate changes. After accounting for endogeneity, this relationship disappears, consistent with the attractiveness of higher returns being offset by increased doubts about bank solvency. The withdrawal decisions of finance professionals are also independent of their personal characteristics, but they appear to place considerable store on deposit insurance generosity and the presence of a formal insurance fund.


The Impact Of Ceo Long-Term Equity-Based Compensation Incentives On Economic Growth In Collectivist Versus Individualist Countries, Cynthia J. Campbell, Rosita P. Chang, Jack C. Dejong Jr., Robert Doktor, Lars Oxelheim, Trond Randoy Jul 2016

The Impact Of Ceo Long-Term Equity-Based Compensation Incentives On Economic Growth In Collectivist Versus Individualist Countries, Cynthia J. Campbell, Rosita P. Chang, Jack C. Dejong Jr., Robert Doktor, Lars Oxelheim, Trond Randoy

Finance Publication

This study examines the impact of the prevalence of long-term equity-based chief executive officer (CEO) compensation incentives on GDP growth, and we address the moderating role of individualist versus collectivist cultures on this relationship. We argue that long-term incentives given to CEOs in some firms may convey to other CEOs that they too may be able to receive such incentives and rewards if they emulate the incentivized and rewarded CEOs. In a longitudinal study across 22 nations over a 5-year period, we find that the higher proportion of CEOs in a country are awarded long-term equity-based incentive compensation, the greater ...


Cash Holdings And R&D Smoothing, James R. Brown, Bruce C. Petersen Jun 2011

Cash Holdings And R&D Smoothing, James R. Brown, Bruce C. Petersen

Finance Publication

The sharp increase in R&D investment in recent decades has important but unexplored implications for corporate liquidity management. Because R&D has high adjustment costs and is financed with volatile sources, it is very expensive for firms to adjust the flow of R&D in response to transitory finance shocks. The main contribution of this paper is to directly examine whether firms use cash reserves to smooth their R&D expenditures. We estimate dynamic R&D models and find that firms most likely to face financing frictions rely extensively on cash holdings to smooth R&D. In particular, our ...


Investigating The Dimensions Of Social Responsibility And The Consequences For Corporate Financial Performance, Virginia Blackburn, M. Doran, Charles B. Shrader Jul 1994

Investigating The Dimensions Of Social Responsibility And The Consequences For Corporate Financial Performance, Virginia Blackburn, M. Doran, Charles B. Shrader

Management Publications

Corporate social responsibility as an area of scientific inquiry has received little attention in the popular and academic press during the last decade. Efforts to investigate social responsibility and its relationship to corporate performance have been frustrated by a lack of adequate operationalizations and measures of social responsibility. Regardless of the reasons for this inattention to the is- sues of corporate responsibility, the tide appears to be turning. Recently, TIAA-CREF, the largest institutional trader in the country, initiated an optional fund which invests exclusively in firms that are deemed socially responsible. Such actions suggest that corporations will increasingly be held ...