Texas Enterprise reviews the latest developments in business research from the McCombs School of Business faculty.
Stock options fell in popularity after the recession and were blamed for encouraging excessive risk. But in an economic recovery, a bigger gamble might be playing it too safe. A new CEO compensation model explains how to pick the right incentives.
This is the cruelest time of year for companies with bad earnings news. While most people are viewing basketball playoffs and Texas bluebonnets, investors are watching for first-quarter earnings reports, and boosting or battering stocks in response. But how can investors know when a company’s earnings news is too good to be true?
College reunions and golf-course chats may be just as important as boardroom meetings and analyst advice for the success of a firm's CEO. Learn how a CEO's social life affects company performance and when it’s best to keep friends at arm's length.
Activist investors pressure corporate directors to keep the best interests of shareholders as a top priority. If you’re on the board of a public company, you might consider them a nuisance, as recent developments at Apple and Dell have illustrated. But if you’re a stockholder, you might welcome such corporate gadflies. Not only might they tip the balance of power your way, but they might raise your stock returns.
Poring over stale financial information might not seem like a particularly useful investment strategy, but new research suggests that yesterday’s news can help drive tomorrow’s profit: Investors can generate an impressive average annual return of close to 8 percent using a simple strategy that relies on the stock market’s reaction to releases of previously announced economic data.
Boards tend to pick the right kind of CEO, with the right kind of background, at the right time for their specific organizations.
SEC regulations require companies to file detailed reports of executive compensation, but many firms submit faulty or incomplete information. McCombs Assistant Professor Yong Yu and his fellow researchers found evidence that a defective compensation reports is often a sign of a deliberate cover-up to conceal CEO overpayment.