[1] "The Effect of the Pay Ratio Mandate on CEO Compensation" [Solo Job Market Paper]

View on SSRN (Full paper available upon request, steven-irlbeck@uiowa.edu)

Conferences and seminars:

  • Financial Management Association Doctoral Student Consortium, New Orleans, LA, October 2019
  • Iowa State University, September 2019
  • The University of Iowa, September 2019
  • Successfully defended Dissertation Proposal, September 2019

Abstract

The pay ratio mandate requires most US public firms to explicitly disclose the ratio of CEO compensation to the compensation of the median employee. I exploit two features of the mandate which allow me to identify the causal effect of the mandate on the level and type of CEO compensation, and, in turn, the firms' behavior. My results show that the mandate prompts firms to shift toward performance-based compensation, primarily by increasing equity-based pay and to a lesser degree by reducing salary. Furthermore, the shift in CEO incentives results in greater debt ratios and R&D investments.


[2] "Religiosity and Risk-Taking: Corporate Culture or Demand Driven?" (with Thomas Berry-Stoelzle)

Revise and Resubmit at the Journal of Corporate Finance

View on SSRN

Conferences and seminars:

  • Eastern Finance Association, Miami, FL, April 2019
  • Financial Management Association, San Diego, CA, October 2018
  • American Risk and Insurance Association, Chicago, IL, August 2018
  • The University of Georgia, February 2018
  • The University of Iowa, January 2018

Abstract

Does local religiosity create a risk averse corporate culture, or is the relationship between religiosity and firm risk taking driven by risk-sensitive demand? We utilize the detailed financial statements of financial services firms and find that both, local religiosity and the religiosity of firms’ largest geographic market, are negatively related to risk taking. The impact of religiosity is stronger for financially unconstrained firms and firms with one salient market, robust to various specifications mitigating endogeneity concerns, and supported by an analysis of headquarter moves. Our evidence suggests that firms’ reduction in risk taking is both corporate culture and demand driven.


[3] "Dual Ownership as a Market Solution to Risk Shifting: Evidence from Loan Covenant Violations" (with Dennis Hamilton and Eric McKee)

View on SSRN

Conferences and seminars:

  • Financial Management Association, San Diego, CA, October 2018
  • Eastern Finance Association, Philadelphia, PA, April 2018
  • Midwest Finance Association, San Antonio, TX, March 2018
  • The University of Iowa, March 2018

Abstract

This paper studies why creditors simultaneously hold equity in the same firm. We posit that holding both debt and equity can protect the value of debt which may be at risk for expropriation by stockholders. Using a regression discontinuity design and exogenous events that increase the probability of a wealth transfer, we find that creditors respond by purchasing equity. Importantly, this effect is true for bondholders but not for lenders who are already protected via control rights.


[4] "The Impact of Enterprise Risk Management on Firm Risk and Firm Value: Evidence from S&P 500 Firms"

Conferences and seminars:

  • American Risk and Insurance Association, Chicago, IL, August 2018


[5] "Local Culture and Companies' Loss Reserving Decisions" (with Thomas Berry-Stoelzle)

Conferences and seminars:

  • Center for the Economic Analysis of Risk/Munich Risk and Insurance Center, Munich, Germany, December 2016
  • American Risk and Insurance Association, Boston, MA, August 2016