Dongliang Lu
Dongliang Lu
Research Interests:
Theoretical Corporate Finance, Corporate Governance, Dynamic Contracting, Dynamic Capital Structure, Real Options, ESG
My research agenda focuses on exploring strategies that investors can employ to mitigate agency problems in dynamic environments. My job market paper demonstrates that although activist interventions can improve governance ex-post, their threat can destroy equity value ex-ante by undermining shareholders’ ability to commit to governance policies, such as monitoring and CEO compensation. Additionally, I provide a complete characterization of the resulting governance distortions and illustrate their dependency on past performance.