Abstract Although legitimacy theory provides strong arguments that environmental, social and governance (ESG) disclosure performance can help mitigate firm-specific (idiosyncratic) risks, this relationship has been repeatedly challenged by conceptual arguments, such as ‘transparency fallacy’ or ‘impression management’, mixed empirical evidence. Therefore, we investigate in the revelatory case o...

To ascertain whether the form of managerial compensation affects a firm’s long-term operating performance, we track IPOs for five years after the expiration of the stabilization period. New public companies perform better when managers receive a balanced combination of stock option grants and equity ownership. Firms with unbalanced compensation arrangements, large option grants and little equit...

Abstract. This chapter explores the stock price impact of expirations of lock-up provisions that prevent insiders from selling their shares after the Initial Public Offering (IPO). I examine 172 lock-up expirations of 142 IPOs floated on Germany’s Neuer Markt. I detect significant negative abnormal returns and a twenty-five percent increase in trading volume surrounding lock-up expiration. The ...