30
JAN
2017
13:15
- 14:45
IWH Research Seminar
A Corporate Governance Asset Pricing Model: Theory and some Evidence
Wer
Ernst-Ludwig von Thadden
(Universität Mannheim)
Wo
IWH conference room
This paper extends the classic risk-return tradeoff of asset pricing to a risk-effort tradeoff, by assuming that managerial effort is necessary to generate cash flows. Corporate governance standards influence the manager's return to effort, her exposure to corporate risk, and the dilution of shareholder value.
