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Stock (geology)

About: Stock (geology) is a research topic. Over the lifetime, 31009 publications have been published within this topic receiving 783542 citations.


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Journal ArticleDOI
TL;DR: In the United States, between 1950 and 2005, the composition of large public company boards dramatically shifted towards independent directors, from approximately 20% independents to 75% independents as discussed by the authors, and the standards for independence also became increasingly rigorous over the period.
Abstract: Between 1950 and 2005, the composition of large public company boards dramatically shifted towards independent directors, from approximately 20% independents to 75% independents. The standards for independence also became increasingly rigorous over the period. The available empirical evidence provides no convincing explanation for this change. This Article explains the trend in terms of two interrelated developments in U.S. political economy: first, the shift to shareholder value as the primary corporate objective; second, the greater informativeness of stock market prices. The overriding effect is to commit the fi rm to a shareholder wealth maximizing strategy as best measured by stock price performance. In this environment, independent directors are more valuable than insiders. They are less committed to management and its vision. Instead, they look to outside performance signals and are less captured by the internal perspective, which, as stock prices become more informative, becomes less valuable. More controversially, independent directors may supply a useful friction in the operation of control markets. Independent directors can also be more readily mobilized by legal standards to help provide the public goods of more accurate disclosure (which improves stock price informativeness) and better compliance with law. In the United States, independent directors have become a complementary institution to an economy of firms directed to maximize shareholder value. Thus, the rise of independent directors and the associated corporate governance paradigm should be evaluated in terms of this overall conception of how to maximize social welfare.

287 citations

Proceedings Article
Wang Yan1
01 Jan 2004
TL;DR: The authors examined empirically the relation between trades and quote changes for stocks trades in order-driven market and found that the price impact of trades is positive and persistent, this means the information content of trades are substantial; large trades convey more information than small trades.
Abstract: This paper examine empirically the relation between trades and quote changes for stocks trades in order-driven marketEstimates for samples of Shanghai Stock Exchange and Shenzhen Stock Exchange issues suggest:the price impact of trades is positive and persistent,this means the information content of trades is substantial;Large trades convey more information than small trades;Information asymmetries are more significant for small firms

287 citations

Journal ArticleDOI
TL;DR: This paper studied the stock market's reaction to aggregate earnings news and found that returns are unrelated to past earnings, suggesting that prices neither underreact nor overreact to aggregate news, and that aggregate returns correlate negatively with concurrent earnings.

287 citations

Journal ArticleDOI
TL;DR: In this paper, the authors assess the welfare effects and incidence of such noice trading using an overlapping-generations model that gives investors short horizons, and find that the additional risk generated by noise trading can reduce the capital stock and consumption of the economy, and part of that cost may be borne by rational investors.
Abstract: Recent empirical research has identified a significant amount of volatility in stock prices that cannot easily be explained by changes in fundamentals; one interpretation is that asset prices respond not only to news but also to irrational “noise trading.” We assess the welfare effects and incidence of such noice trading using an overlapping-generations model that gives investors short horizons. We find that the additional risk generated by noise trading can reduce the capital stock and consumption of the economy, and we show that part of that cost may be borne by rational investors. We conclude that the welfare costs of noise trading may be large if the magnitude of noise in aggregate stock prices is as large as suggested by some of the recent empirical litrature on the excess volatility of the market.

287 citations

Journal ArticleDOI
TL;DR: In this paper, the authors provide empirical evidence on the positive effect of non-executive employee stock options on corporate innovation and find that stock options foster innovation mainly through the risk-taking incentive, rather than the performance-based incentive created by stock options.
Abstract: We provide empirical evidence on the positive effect of non-executive employee stock options on corporate innovation. The positive effect is more pronounced when employees are more important for innovation, when free-riding among employees is weaker, when options are granted broadly to most employees, when the average expiration period of options is longer, and when employee stock ownership is lower. Further analysis reveals that employee stock options foster innovation mainly through the risk-taking incentive, rather than the performance-based incentive created by stock options.

286 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
202237
20211,825
20201,882
20191,697
20181,539
20171,706