Laura T. Starks
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View article: Gender Pay Gap and Cultural Values
Gender Pay Gap and Cultural Values Open
Employing a cross-country sample, we examine how a population’s underlying cultural values help explain gender compensation variation across corporate executives. The results show that the cultural differences, embedded in societies long b…
View article: CEO Incentives for Risk-Taking and Compensation Duration
CEO Incentives for Risk-Taking and Compensation Duration Open
When determining new equity grants, corporate boards face a tradeoff between the CEO’s incentives generated from the grant’s duration versus those arising from the convexity of the embedded equity risk. We hypothesize and find that boards …
View article: Target Firm Advertising and Firm Value
Target Firm Advertising and Firm Value Open
Consistent with hypotheses underlying firm advertising, we find that targets with pretakeover advertising obtain higher premiums, whereas their acquirers earn lower announcement returns. These economically significant effects suggest that …
View article: ESG shareholder engagement and downside risk
ESG shareholder engagement and downside risk Open
We show that engagement on environmental, social, and governance issues can benefit shareholders by reducing firms’ downside risks. We find that the risk reductions (measured using value at risk [VaR] and lower partial moments) vary across…
View article: Presidential Address: Sustainable Finance and ESG Issues—<i>Value</i>versus<i>Values</i>
Presidential Address: Sustainable Finance and ESG Issues—<i>Value</i>versus<i>Values</i> Open
In this address, I discuss differences across investor and manager motivations for considering sustainable finance— value versus values motivations—and how these differences contribute to misunderstandings about environmental, social, and …
View article: ESG and Downside Risks
ESG and Downside Risks Open
Due to their long-term horizons, pension funds face enhanced exposures to the long-lived effects of many environmental, social, and governance (ESG) risks. Moreover, given the potential consequences of being underfunded, pension funds are …
View article: CEO turnover: Cross‐country effects
CEO turnover: Cross‐country effects Open
Research Question/Issue We examine how countries' cultural and legal environment, in addition to firm‐level governance mechanisms, affects firms' retention and termination decision of the CEO. Research Findings/Insights Previous research f…
View article: Climate Risk Disclosure and Institutional Investors
Climate Risk Disclosure and Institutional Investors Open
Through a survey and analyses of observational data, we provide systematic evidence that institutional investors value and demand climate risk disclosures. The survey reveals the investors have a strong demand for climate risk disclosures,…
View article: Issue Information
Issue Information Open
and Rest of World), €521 (482), £381 (UK
View article: The Asymmetry in Responsible Investing Preferences
The Asymmetry in Responsible Investing Preferences Open
We design an experiment to understand how social preferences affect investment decisions through stock allocations and probability assessments.The major preference channel is asymmetric in social outcomes -although negative and positive re…
View article: Institutional Investors and Hedge Fund Activism
Institutional Investors and Hedge Fund Activism Open
Hedge fund activists have ambiguous relationships with the institutional shareholders in their target firms. While some support their activities, others counter their actions. Due to their relatively small holdings in target firms, activis…
View article: Molecular Genetics, Risk Aversion, Return Perceptions, and Stock Market Participation
Molecular Genetics, Risk Aversion, Return Perceptions, and Stock Market Participation Open
We show that molecular variation in DNA related to cognition, personality, health, and body shape, predicts an individual's equity market participation and risk aversion.Moreover, the molecular genetic endowments predict individuals' retur…