Eliezer Fich in the News

Eliezer Fich in the News

How Shareholder Litigation Affects Firm Disclosure

via Columbia Law School

A study coauthored by Drexel University’s LeBow College of Business Professor Eliezer Fich and PhD candidate Thomas Griffin investigated how the threat of shareholder litigation affects how firms manage and share information.

The Trump Tax Cut Isn't Trickling Down to Workers

via Vice News

Eliezer Fich, professor of finance, offered insight into the market demands that were cited as the cause for the new tax bill.

Timing Stock Trades for Personal Gain By CEOs

via ValueWalk

ValueWalk reports on research by associate professor of finance Eliezer Fich that looks at how CEOs may stand to gain from large stock sales.

The Age of Vernon Jordan Is Over -- Serving on a Board Is a Full-Time Job Now

via The Street

A paper by Drexel LeBow associate professor of finance Eliezer Fich is mentioned in an article about the time commitment required of corporate board members.

Timing Stock Trades for Personal Gain: Private Information and Sales of Shares by CEOs

via Harvard Law School Forum on Corporate Governance and Financial Regulation

Eliezer Fich, associate professor of finance at Drexel LeBow, and his coauthors examine the effects of SEC Rule 10b5-1 on the gains that CEOs earn when they sell large blocks of stock.

Symantec’s CEO-Shuffling Board

via The Wall Street Journal

LeBow’s Eli Fich, PhD, associate professor of finance, spoke to the Wall Street Journal about Symantec’s board amid the criticism surrounding its firing of its CEO last week. Fich says the average age of its members is “substantially higher” than other tech companies.

The WSJ reports: “Symantec last week fired Chief Executive Steve Bennett, less than two years after ousting his predecessor, who had himself spent only about three years on the job. The stock fell about 12 percent, suggesting the market thinks shuffling CEOs again may not solve Symantec’s problems.”

Green Mountain demotes chairman, director for stock sales

via Reuters

Elizer Fich, Ph.D., associate professor of finance, was quoted in a Reuters article on Green Mountain Coffee’s demotion of its chairman and director of stock sales after a huge loss in the value of its stock led to scrutiny of its management team.

It definitely reflects poorly on the company’s corporate governance that they were allowed to pledge such a big portion of their stock on margin,” said Fich. The article was picked up by various outlets including MSNBC.com and CBNC.com.

Sunoco’s departing Elsenhans slated to get $37.4M

via The Philadelphia Business Journal

Eliezer M. Fich, associate professor of finance, is quoted in a Philadelphia Inquirer article about how Lynn L. Elsenhans, the former Sunoco Inc. chief executive, stands to bank $37.4 million for dramatically transforming the company, which is being sold.

Rip-cord economics

via The Economist

Research co-authored by Eliezer Fich, Ph.D., and Ralph Walkling, Ph.D., was cited in an Economist article titled “Rip-Cord Economics: Pay-Offs for the Boss Need to Be Better Designed.” Their research found that when golden parachutes are larger, proposed mergers are more likely to be completed, but buyers pay less for the shares of the target firm.

Option Grants Draw Scrutiny

via The Wall Street Journal

Eliezer Fich, Ph.D., associate professor of finance at LeBow College of Business, was quoted in a Wall Street Journal article about the practice of awarding stock options to top executives while engaging in negotiations to be acquired.

It’s very selfish behavior by these CEOs,” argues Fich, co-author of a research paper on the topic with Jie Cai, an assistant professor of finance at LeBow College, and Anh L. Tran. “They want to get the last nickel from the company, regardless of what’s in the best interests of shareholders.”

Their paper, which has been presented at academic conferences but not yet published, examined 110 deals between 1999 and 2006 in which target company CEOs were given unscheduled stock-option grants while takeover discussions had started but hadn’t yet been made public.    

It's Not Easy Getting Green

via iStockAnalyst

AN iStockAnalyst article entitled “It’s Not Easy Getting Green” references the CNBC article “Stock Option Grants to Target CEOs During Private Merger Negotiations,” authored by Eliezer Fich, associate professor of finance at LeBow College of Business.

Stock Option Grants to Target CEOs During Private Merger Negotiations

via CNBC

Eliezer Fich, associate professor of finance at LeBow College of Business, wrote an article for CNBC on findings outlined by his research paper co-authored with Jie Cai, an assistant professor of finance at LeBow College, and Anh Tran, entitled “Stock Option Grants to Target CEOs During Private Merger Negotiations.” 

My co-authors and I were baffled to discover that target CEOs, such as Marvel’s Perlmutter, are not technically in violation of Sections 10(b) and/or 16(b) of the 1934 Securities Act which penalize insider trading,” Fich writes. “Specifically, these laws state that ‘any person purchasing or selling a security while in possession of material, nonpublic information shall be liable in an action in any court of competent jurisdiction…’.”