The Finance Professor Podcast
Ep. 4: Overpaid CEOs Got FDIC Debt Guarantees

Ep. 4: Overpaid CEOs Got FDIC Debt Guarantees

May 5, 2017

Linus Wilson reads his joint work at 

https://ssrn.com/abstract=1977345

"Overpaid CEOs Got FDIC Debt Guarantees"

By Linus Wilson, University of Louisiana at Lafayette and Yan Wendy Wu, Wilfrid Laurier University

abstract

From 2008 to 2009, the FDIC guaranteed hundreds of billions of dollars of newly issued bank debt through the Temporary Liquidity Guarantee Program (TLGP). We find that CEOs making more than their peer groups were significantly more likely to steer their companies to obtain federal guarantees for their banks’ debt. The average bank in our sample with a debt guarantee had a CEO who was paid $1.6 million per year more than the average CEO in his or her peer group. In addition, there is strong evidence that large, systemically important banks were more likely to obtain FDIC debt guarantees.

Keywords: bailout, banks, CDS, Citigroup, CEO Compensation, corporate governance, credit default swaps, debt, debt guarantees, Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, emergency lending, FDIC, Federal Deposit Insurance Corporation, Federal Reserve, financial crisis, FOIA, Freedom

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Ep. 3: How to Compare Faculty Pay Across the Business School by Linus Wilson

Ep. 3: How to Compare Faculty Pay Across the Business School by Linus Wilson

April 18, 2017

In the latest episode, I read my new working paper:

 How to Compare Faculty Pay Across the Business School by Linus Wilson

You can download it by hitting the orange download button at the link.

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2954800

The abstract is below:

"By scaling pay by AACSB averages pay across business school disciplines can be analyzed. This study looks at a unique data set of business school professors at the University of Louisiana at Lafayette. It finds large disparities in pay between the business disciplines that cannot be explained by the market price of scholars in the disciplines, research productivity, or faculty to major ratios. The finance professors were the lowest paid of six disciplines as a percent of AACSB pay, but had the highest research productivity and majors per research faculty member at the Moody College of Business Administration (MCOBA). Finance professors were paid about 20 percent less as a percent of the AACSB average for their rank and discipline than other research faculty at the MCOBA. Members of the management department were paid significantly higher percent of AACSB average pay than other professors in the business school. This data may be indicative of a misallocation of resources. The approach in this paper could be applied to analyze pay practices at many other business schools and over many other time periods."

The video version of the paper is at https://youtu.be/A7vM2qNj-h4

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Ep. 2: Crowdfunding on Patreon on The Finance Professor Podcast with Linus Wilson

Ep. 2: Crowdfunding on Patreon on The Finance Professor Podcast with Linus Wilson

April 14, 2017

The JOBS Act opened up a lot of crowdfunding opportunities for entrepreneurs. That also means much more research opportunities for finance professors. In the second episode, I read my recent working paper "A Little Bit of Money Goes a Long Way: Crowdfunding on Patreon by YouTube Sailing Channels". The abstract says:

"This study finds that YouTube channels crowdfunding on Patreon have more frequent video creation. The median YouTube channel that crowdfunded on Patreon produced a video every 7.5 days compared to 105 days for the median comparable channel that did not link to Patreon. Crowdfunders have more views per video, are more likely to link to their Facebook pages, and uploaded videos more frequently. While two channels in the sample, each earned over $150,000 in 2016 from Patreon, the typical crowdfunding sailing channel earned $73 per video, per month, or creation. It appears that a little bit of money was associated with a big increase in new video production."

 

 

I believe my study is the first academic study about this rapidly crowdfunding platform called Patreon. 

Ep. 1: Introducing the Finance Professor Podcast by Linus Wilson

Ep. 1: Introducing the Finance Professor Podcast by Linus Wilson

April 13, 2017

The Finance Professor Podcast is hosted by Linus Wilson. Dr. Wilson earned his Ph.D. in 2007 from Oxford University. He has taught thousands of finance students at all levels. His research is in banking, financial crises, CEO pay, and corporate finance. I’ll be reading my academic research initially.