mini_case_SteveJobs_2011

mini_case_SteveJobs_2011 - managers own lots of stock q = 1...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Big Issue: How Valuable is CEO? Does firm value increase or decrease with the level of stock ownership of the CEO? What are pros and cons of CEO having large ownership of the firm? 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Other People’s Money Agency problems should be worst where managers own the least stock q = 1 0% managerial stock ownership 100% Predicted firm value q ratio CEO pays little of Lear jet cost CEO pays most of Lear jet cost Predicted relationship is not observed
Background image of page 2
Entrenched Management Agency problems should be worst where
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 6
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 8
Background image of page 9
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: managers own lots of stock q = 1 0% managerial stock ownership 100% Predicted firm value q ratio Firm is easy to take over Firm is hard to take over Predicted relationship is not observed How to test cleanly the value of CEO to the company? Remember, academics are a sick bunch 4 Old CEOs Sometimes Die on the Job! stock price CEO death announced time 6 7 What is your best estimate of value of Steve Jobs to Apple? Roughly 5%? More than 5%? Less than 5%? 8...
View Full Document

This note was uploaded on 01/02/2012 for the course FINANCE 347 taught by Professor Bayou during the Fall '11 term at NYU.

Page1 / 9

mini_case_SteveJobs_2011 - managers own lots of stock q = 1...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online