Alex Edmans
Professor of Finance, London Business School

(on leave from The Wharton School)

NBER Faculty Research Fellow
CEPR Research Fellow

ECGI Research Associate

Address: London Business School, Regent's Park,
London NW1 4SA
Tel: (020) 7000 8258
Email: aedmans <at> london <dot> edu
Twitter: @aedmans
Access to Finance blog



Latest Academic Papers:

February 15: New paper, The Generalized Informativeness Principle. We show that the informativeness principle does not hold if the first-order approach is invalid. We derive a "generalized informativeness principle" that holds generically, even if the first-order approach is invalid.

September 14: Major rewrite of The Value of Informativeness for Contracting. The informativeness principle shows that greater signal precision increases contracting efficiency. We show that it may weaken incentives, potentially justifying pay-for-luck.

August 14: New paper, Strategic News Releases in Equity Vesting Months. CEOs release more news, and more positive news, in months in which their equity vests. These releases boost stock prices and liquidity, and the CEO cashes out shortly after. Financial Times, Bloomberg TV, Barrons coverage.

August 14: New paper, The Informativeness Principle Under Limited Liability. The informativeness principle does not automatically extend to settings with limited liability: even an informative signal may have zero value for contracting. We derive new conditions for signals to have value under limited liability.

August 14: New paper, Governance and Comovement Under Common Ownership. Governance can be stronger when investors are "spread thinly" and own blocks in multiple firms. Selling one firm and retaining others is a powerful signal of underperformance, disciplining the manager ex ante.

July 14: Final version of survey paper on Blockholders and Corporate Governance, for Annual Review of Financial Economics. Covers theoretical and empirical literature on both "voice" and "exit".

July 14: New paper, Employee Satisfaction, Labor Market Flexibility, and Stock Returns Around The World. Companies with high employee satisfaction outperform, but only in countries with high labor market flexibility. Institutional context is key to SRI. VoxEU summary, Knowledge@Wharton coverage

Latest Talks:

May 14: Graduation Address to Wharton MBA Class of 2014.

Latest Policy Pieces:

February 15: Why Companies Need to Think Long-Term, article for the World Economic Forum.
January 15: Does Corporate Social Responsibility Improve Firm Value?, article for the World Economic Forum.
December 14: Shareholder activism in action: reforming the corporate governance of a firm that pursued short-term gain at the expense of long-term value.
November 14: How Should CEOs Be Paid?, article for the World Economic Forum.
August 14: The Secrets of Time Management. Article in CityAM.
May 14: Pay Bosses in Debt - Not Just Equity - To Deter Future Crisis. Opinion piece in CityAM.

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