PROF. MARC GOERGEN ON CORPORATE GOVERNANCE

This paper provides a comprehensive introduction to how social networks shape outcomes in corporate finance. It highlights that relationships between individuals and organisations, such as directors serving together, sharing educational backgrounds, or belonging to the same professional or social circles, form networks that meaningfully influence firm behaviour and governance.  The paper also distinguishes between one-mode networks (e.g., director–director links) and two-mode networks (e.g., directors and the firms they serve), showing how different analytical tools, such as centrality measures and Q-analysis, reveal patterns of influence, prominence, and information flow across corporate systems.  Read the full paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5824084

Many firms listed on the Milan Stock Exchange are family firms. A significant number of them have more than one CEO. But how do these co-CEO structures impact ESG performance? In our latest study, my co-authors Yuliya Ponomareva , Francesco Paolone , and Domenico R. Cambrea and I find that co-CEO structures generally reduce ESG performance due to family-induced cognitive diversity. However, when one of the co-CEOs also chairs the board, this negative effect is mitigated and can even turn positive. Our research is now published online in the Journal of Business Ethics and is available free of charge from here . Here is the link to a brief podcast summarising the study.

A CEO’s political beliefs can significantly influence corporate decisions, dividend policies, and workforce management. The personal political beliefs of CEOs can significantly influence corporate decisions, including dividend policies and workforce management. Research indicates that conservative CEOs, who are generally more risk-averse and prudent, tend to favor stable dividend payouts. In contrast, liberal CEOs, who are more open to change and innovation, may prefer to reinvest earnings into the company rather than distribute them as dividends. Please see my latest article for IE Insights for further details.

My latest study with Luc Renneboog and Yang Zhao looks at insider trades by directors who sit on multiple boards. When these directors face a trading ban in one of their firms due to an impending earnings announcement, we find they often trade in one of their other firms, using their private information, and they make a profit by doing so. These trades aren't illegal, but are they ethical? You can hear more about our findings in this podcast . An executive summary is available from the Harvard Law School Forum on Corporate Governance . The study itself can be downloaded from the website of the European Corporate Governance Institute (ECGI) .

Ever wondered how a CEO's political ideology influences their company's payout policy? In my latest study with Ali Bayat, we find that conservative CEOs are not only more likely to pay dividends, but they also pay higher dividends and often combine them with share repurchases. Interestingly, these payouts are typically funded by drawing on cash reserves and cutting back on capital and R&D spending. Our full study will be published soon in the Journal of Banking and Finance. You can read it here . A podcast summarising the study is available from here .

How did CEOs of S&P500 firms navigate the challenges of the COVID-19 pandemic? Did they prioritize shareholders by maintaining dividends, or did they focus on protecting jobs? In a recent study conducted with my co-authors Ali Bayat , Panagiotis Koutroumpis and Xingjie Wei , we find that the answer to this question depends on a CEO's political orientation. The study was published in the Journal of Corporate Finance where it is available for free via open access . A brief podcast discussing the study is available below. Marc Goergen · Podcast - Covid paper