Alex Edmans

Professor of Finance, London Business School

CEPR Research Fellow
ECGI Research Associate


Latest Academic Papers

Nov 18: Strategic News Releases in Equity Vesting Months. Lead article in Review of Financial Studies. CEOs strategically reallocate news releases to coincide with months in which their equity is vesting.

Aug 18The Informativeness Principle Without The First-Order Approach. Forthcoming in Games and Economic Behavior.

Aug 18: Governance Under Common Ownership. Forthcoming in Review of Financial Studies. Common ownership can improve corporate governance, rather than leading to anti-competitive behavior.

Jan 18The Long-Term Consequences of Short-Term Incentives. Vesting equity is associated with a higher likelihood of M&A and share repurchases, and higher short-term returns but lower long-term returns to these actions.

Oct 17: The Source of Information in Prices and Investment-Price Sensitivity published in the Journal of Financial Economics.  Managers learn from prices to guide their investment decisions – financial markets matter for the real economy. But value of financial markets depends not on the total amount of information in prices, but where this information comes from.

July 17Executive Compensation: A Survey of Theory and Evidence. New survey paper on executive compensation, containing (1) Data on CEO and other top executive pay over time and across firms, including private firms and non-US firms. (2) Critical analysis of three explanations for the drivers of pay: shareholder value maximization (including a simple unifying model), rent extraction, institutional influences. (3) The “effects” of executive pay and challenges in causal identification. (4) Directions for future research.

July 17: Blockholders: A Survey of Theory and Evidence. Survey paper for the Handbook of the Economics of Corporate Governance on: underlying property rights of public firms and role of blockholders; definition of a blockholder; new evidence on frequency and characteristics of blockholders; simple model unifying theories of voice and exit; review of empirical studies; future research directions.

Corporate Governance Reform

Response to FRC’s Pre-Consultation on the Stewardship Code, on the importance of exit/trading as a governance mechanism

Response to the FRC/FCA Joint Consultation on a Regulatory Framework for Stewardship, clarifying the academic evidence on shareholder engagement

Response to FRC’s Pre-Consultation on the Corporate Governance Code, addressing diversity

Stewardship Must Be Embedded Across the Investment Chain (Financial Times)

The Case for Stock Buybacks (Harvard Business Review)

The Answer to Short-Termism Isn’t Asking Investors to Be Patient (Harvard Business Review)

Response to government’s Green Paper on Corporate Governance

Response to government’s Green Paper on Industrial Strategy

Response to Financial Conduct Authority’s discussion paper on the primary markets landscape

Written evidence to House of Commons Corporate Governance Inquiry on CEO pay, workers on boards, shareholder vs. stakeholder maximisation

Oral testimony in House of Commons, 15 November 2016 (transcript)

Supplementary written evidence: short-term trading, dividends and repurchases are not bad for society; further evidence on workers on boards

Executive Compensation Reform

Written evidence to House of Commons Executive Pay Inquiry advocating simple, transparent, and long-term schemes

Simplicity, Transparency, and Sustainability: A New Model for CEO Pay. (Many elements are recommended by House of Commons Select Committee on Corporate Governance and UK Government’s Green Paper on Corporate Governance Reform)

Compilation of non-technical, practitioner article on executive pay

Letter to SEC on why they should not force pay ratio disclosure

When CEO’s Equity Is About to Vest, They Cut Investment to Boost the Stock Price (Harvard Business Review)

Why Elon Musk’s Compensation Plan Wouldn’t Work For Most Executives (Harvard Business Review)

Why We Need to Stop Obsessing Over CEO Pay Ratios (Harvard Business Review)

Link Executive Pay to Wider Societal Benefits (FT Op-Ed)

Stop Making CEO Pay A Political Issue (Harvard Business Review)

Performance-Based Pay For Executives Still Works (Harvard Business Review)

The Purposeful Company

Stewardship Must Be Embedded Across the Investment Chain (Financial Times)

Corporate Governance Green Paper is a Call to Arms: FT Op-Ed

Policy Report proposing reform to executive pay, blockholders, company law, accounting, the investment industry, and early-stage financing to embed purpose into companies. Brief summary

Executive Pay Report. Evidence-based proposals to reform executive pay. Brief summary

Stewardship Code: Ideas for a potential revision of the Code, so that stewardship moves from a policy to a practice

Integrated Stewardship: The need for an integrated approach to stewardship regulation, covering all parts of the investment chain (asset managers, pension funds and other asset owners, investment consultants, proxy advisors)


The Case For Brexit

The Case For Remain

The Rational Response to Brexit

The UK’s Brexit Options: Single Market, Customs Union, Free Trade Agreement explained

TED Talk, What to Trust in a Post-Truth World

TEDx Talk, The Social Responsibility of Business