New book: Grow the Pie: How Great Companies Deliver Both Purpose and Profit. FT Business Books of the Year; FT/ISFFC Award for Excellence in Sustainable Finance Education
– Korean translation (published as “ESG 파이코노믹스”)
– Preface to the Updated and Revised paperback edition

Sept 21: The Long-Term Consequences of Short-Term Incentives forthcoming in Journal of Accounting Research. 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.

Jul 21: Music Sentiment and Stock Returns Around the World forthcoming in Journal of Financial Economics. We introduces a real-time, continuous measure of national sentiment – the positivity of songs that citizens listen to – and link it to abnormal stock returns (which subsequently reverse), volatility, and mutual fund flows.

Jul 21: New paper, When Is (Performance-Sensitive) Debt Optimal? Existing theories of debt assume output is the only contractible performance measure available. We show that debt continues to be optimal when the firm has access to other performance signals – and how these signals should affect the debt repayment, leading to performance-sensitive debt.

Jun 21: New paper, CEO Compensation: Evidence From the Field. We survey directors and investors on how they set CEO pay in practice, revealing a number of departures from mainstream academic models.

Jan 21: How Should Performance Signals Affect Contracts? forthcoming in Review of Financial Studies. The informativeness principle demonstrates that a contract should depend on informative signals. This paper studies how they should do so.