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The Market for CEOs: Evidence from Private Equity

Harvard Corporate Governance

A wide range of research examines the market for CEOs and executive mobility in public companies while largely ignoring the market for CEOs in private equity funded companies. We augment the work on public company CEOs by studying the market for CEOs among larger U.S. times on its equity investment.

Equity 264
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Do Equity Markets Care About Income Inequality? Evidence from Pay Ratio Disclosure

Harvard Corporate Governance

financial markets and shareholders assess the dispersion in pay between a firm’s top executives and rank-and-file employees. We find that firms reporting a higher pay ratio experience a significantly lower market reactions than firms reporting a lower pay ratio. However, it is largely unknown how U.S.

Equity 225
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Private Equity—2023 Outlook

Harvard Corporate Governance

Despite the challenges the year presented for investors (rising interest rates, tumultuous financial markets, geopolitical upheaval, etc.), private equity showed resilience in 2022. We review below some of the key themes that drove private equity deal activity in 2022 and our expectations for 2023. Deal volumes down.

Equity 237
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The Corporate Calendar and the Timing of Share Repurchases and Equity Compensation

Harvard Corporate Governance

Wang (discussed on the Forum here ); and Share Repurchases, Equity Issuances, and the Optimal Design of Executive Pay by Jesse M. 2013 ) and specifically the CEO ( Moore, 2020 ) are more likely to sell equity when firms buy back stock. 2021) present evidence consistent with stock price manipulation around the vesting of CEOs’ equity.

Equity 261
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Private Equity and the Corporatization of Health Care

Harvard Corporate Governance

Six decades ago, Nobel economist Kenneth Arrow wrote a seminal article justifying various “nonmarket social institutions” that shielded health services from normal market conditions. For a discussion of Arrow’s theories and evolving health care markets, see this symposium.

Equity 247
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The Credit Markets Go Dark

Harvard Corporate Governance

In The Credit Markets Go Dark , we describe how private credit funds are reshaping corporate governance and corporate finance and offer new data capturing its meteoric rise. trillion in 2023. more…)

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A Tale of Two Networks: Common Ownership and Product Market Rivalry

Harvard Corporate Governance

The past few decades have seen public equity markets becoming increasingly dominated by a few large, diversified institutional investors such as BlackRock, Vanguard, and Fidelity. It requires information on both the competitive landscape (which firms compete with each other) and asset markets (which firm’s shares each investor holds).