http://knowledge.wharton.upenn.edu/ Knowledge@Wharton is an online resource that offers the latest business insights, information, and research from a variety of sources. Content includes analysis of current business trends, interviews with industry leaders and faculty, articles based on the most recent business research, book reviews, conference and seminar reports, and links to other websites. en-us Copyright (c) 2009 The Wharton School of the University of Pennsylvania http://www.wharton.upenn.edu/faculty/edmans_alex.jpg http://www.wharton.upenn.edu/faculty/ 125 45 Wharton Faculty Research Finance and Investment http://knowledge.wharton.upenn.edu/article.cfm?articleid=2249&source=rss Executive compensation packages that provide huge payouts for short-term stock-market gains have been blamed for playing a role in the risky behavior that triggered the continuing financial crisis. In a new research paper, a Wharton professor and several colleagues say they have come up with something better: A compensation structure based on long-term escrow accounts. Wed, 27 May 2009 17:04:13 EST Leadership and Change http://knowledge.wharton.upenn.edu/article.cfm?articleid=2151&source=rss The contrast is jarring. As thousands of Americans lose their jobs, headlines are focused on excessive executive compensation and lavish perks, including multi-million-dollar bonuses, a $1.2 million executive suite renovation (since repaid) and plans to buy a new corporate jet (since scrapped). It's not surprising that the harsh economic climate and resurgent role of government in business has turned a spotlight on compensation. Indeed, rules announced this week by the Obama administration set new limits on executive pay. But overall, what should government do, or not do, to ensure fairness and accountability in the executive suite? Wed, 04 Feb 2009 17:07:39 EST Finance and Investment http://knowledge.wharton.upenn.edu/article.cfm?articleid=2078&source=rss In merger-and-acquisition advice, an investment bank's market share does not seem to equate with value delivered to clients, two scholars from Wharton and the Massachusetts Institute of Technology conclude in a research paper. Indeed, the opposite may be true: The more market share an investment bank has, the less value it will deliver to clients. Wed, 29 Oct 2008 13:34:46 EST Finance and Investment http://knowledge.wharton.upenn.edu/article.cfm?articleid=1873&source=rss <SPAN style="font-size: 10pt; font-family: verdana">Contrary to management theories developed in the Industrial Age, employee satisfaction is an important ingredient for financial success, according to a new research paper by Wharton finance professor Alex Edmans. His findings also challenge the importance of short-term financial results and may have implications for investors interested in targeting socially responsible companies. The paper is titled, "Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity Prices."</SPAN> Wed, 09 Jan 2008 15:30:15 EST Finance and Investment http://knowledge.wharton.upenn.edu/article.cfm?articleid=1797&source=rss <SPAN>After weeks of skittishness and fear, investors showed signs on Tuesday of settling down. "Yesterday was one of the dullest days in the market that we've had in a while, and that's good in many ways," says Wharton finance professor Jeremy Siegel. Investors have been reeling from widespread problems in the subprime sector, stocks have fallen, yields on Treasury securities have dropped and some companies are finding it hard to borrow money -- all of which spurred the Federal Reserve last week to announce a cut in interest rates. Meanwhile, the upheaval has shown that quant funds, despite their computer power, aren't immune to mistakes and market downturns. So what can we expect in the weeks ahead? </SPAN> Wed, 22 Aug 2007 13:35:36 EST