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Program on Corporate Governance Advisory Board
- Peter Atkins
- David Bell
- Kerry E. Berchem
- Richard Brand
- Daniel Burch
- Paul Choi
- Jesse Cohn
- Arthur B. Crozier
- Renata J. Ferrari
- Andrew Freedman
- Ray Garcia
- Joseph Hall
- Jason M. Halper William P. Mills
- David Millstone
- Theodore Mirvis
- Philip Richter
- Elina Tetelbaum
- Sebastian Tiller
- Marc Trevino
- Steven J. Williams
Author Archives: Harvard Law School Forum on Corporate Governance and Financial Regulation
Shareholder Activism, Say on Pay and Executive Compensation
Executive pay is taking center stage in the governance reform debate, with significant attention given to a proposal to mandate an annual advisory shareholder vote on the executive compensation report, known as “say on pay,” following the example of United Kingdom (U.K.). I have recently completed two studies examining this proposal—the first considers the impact […]
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Posted in Academic Research, Boards of Directors, Corporate Elections & Voting, Empirical Research, Executive Compensation, International Corporate Governance & Regulation, Legislative & Regulatory Developments
Tagged Executive Compensation, Say on pay, Shareholder activism
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Treasury Inc.: How the Bailout Reshapes Corporate Theory & Practice
In my recent paper, currently in the submission process, Treasury Inc.: How the Bailout Reshapes Corporate Theory and Practice, I explore the implications of the U.S. Treasury Department and the Federal Reserve’s controlling ownership positions in many companies through its decision to take equity in TARP bailout participants. I show how existing corporate theory is […]
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Posted in Academic Research, Banking & Financial Institutions, Financial Crisis
Tagged Bailouts, Entanglement, TARP, Treasury Department
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Why did some banks perform better during the crisis?
Throughout the world, many large banks have seen most of their equity destroyed by the crisis that started in the U.S. subprime sector in 2007 and governments have had to infuse capital in banks in many countries to prevent outright failure. Many observers have argued that ineffective regulation contributed or even caused the collapse. If […]
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Posted in Academic Research, Bankruptcy & Financial Distress, Financial Crisis, Financial Regulation
Tagged Banks, Financial crisis, Financial regulation, Stock returns
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FDIC Releases Policy Statement Restricting Private Equity Investments in Failed Banks
The FDIC issued yesterday its final policy statement on private equity investments in failed banks. In early July, the FDIC issued a proposed policy statement containing stringent restrictions on these types of transactions. While the final policy statement relaxes some of these limitations, it continues to impose significantly higher requirements for private equity investors seeking […]
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Posted in Financial Crisis, Legislative & Regulatory Developments, Practitioner Publications, Private Equity
Tagged Banks, Failed banks, FDIC, Private equity
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Guaranteed Bonuses Can Induce Risk-Taking
(Editor’s Note: This post is based on an op-ed piece by Lucian Bebchuk published today on Wall Street Journal Online and available here.) Financial firms seeking to attract and retain talent are reported to be making a substantial use of guaranteed bonuses, and the French Economy Minister recently called for limits on guaranteed bonuses. While […]
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Posted in Executive Compensation, Financial Crisis, Financial Regulation, Op-Eds & Opinions
Tagged Bonuses, Incentives, Risk
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A Critique of the President’s Financial Regulation Reforms
(Editor’s Note: This post by Richard A. Posner is the second part of a two-part series, and is based on a recent article in Lombard Street; the first part was posted on the Forum here.) If the proposals in the Obama Administration’s report on financial regulatory reform are adopted, the restriction on the size or […]
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Posted in Financial Crisis, Financial Regulation, Legislative & Regulatory Developments, Op-Eds & Opinions
Tagged Consumer protection, Executive Compensation, FHCs, Financial regulation
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Using Nonfinancial Measures to Assess Fraud Risk
In our paper, Using Nonfinancial Measures to Assess Fraud Risk, which is forthcoming in the Journal of Accounting Research, we investigate whether publicly available nonfinancial measures (NFMs), such as the number of retail outlets, warehouse space, or employee headcounts, can be used to assess the likelihood of fraud. More specifically, we test whether inconsistencies […]
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Posted in Academic Research, Accounting & Disclosure, Empirical Research
Tagged Corporate fraud, Disclosure
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Is the Supreme Court Determined to Expand Corporate Power?
(Editor’s Note: This essay was written by Robert Monks and Harvard Law School Visiting Professor Peter Murray.) One of the phrases bandied about during the confirmation hearings for Judge Sonia Sotomayor’s nomination to the United States Supreme Court is “judicial activism” – a tendency of judges to use the cases they decide to implement their […]
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Posted in Court Cases, Legislative & Regulatory Developments
Tagged Citizens United v. FEC, Political spending
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Financial Decisions and Firm Location
In our paper Financial Structure, Acquisition Opportunities, and Firm Locations, which was recently accepted for publication in the Journal of Finance, we investigate the relation between firms’ locations and their corporate finance decisions. More specifically, we examine whether these choices are related to whether or not the firm is located within an industry cluster, […]
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Posted in Academic Research, Empirical Research, Mergers & Acquisitions
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The Case For Aggressive Enforcement Of The Sarbanes-Oxley “Claw Back” Provison
(Editor’s Note: This post comes to us from Daniel J. Hurson of the Hurson Law Firm LLP, and relates to a recent client memorandum by Mr. Hurson, which can be found here.) In a recent forum post, John F. Savarese and Wayne M. Carlin of Wachtell Lipton are critical of the SEC’s recent filing of […]
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Posted in Executive Compensation, Financial Regulation, Legislative & Regulatory Developments, Securities Regulation
Tagged Clawbacks, SEC, SOX, SOX Section 304
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