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The GUTMANN CENTER FOR PORTFOLIO MANAGEMENT at the University of Vienna

is pleased to announce

the following PUBLIC LECTURE

"Stock Price Performance and Managerial Incentives"

by Prof. Dr. Rajesh K. AGGARWAL

(Tuck School of Business, Dartmouth College - http://mba.tuck.dartmouth.edu/pages/faculty/raj.aggarwal/)

Abstract:

Recent notable bankruptcies such as Global Crossing, Qwest, and Worldcom have led many observers to question whether there is a link between equity returns and incentive compensation for firm managers specifically and corporate governance more generally. Research has shown that there is such a link but that it is not a simple one. In general, greater incentives from compensation and better corporate governance are associated with higher stock returns. However, the form of incentive compensation matters. Very large stock option grants (such as those realized by the management teams of Global Crossing, Qwest, and Worldcom) are associated with lower stock returns, as well as worse corporate governance. Overall, the evidence suggests that incentive compensation and corporate governance provide useful information for portfolio selection.

Date: Thursday, March 20th, 4.30 p.m.

Location: Bank Gutmann AG (www.gutmann.at), Schwarzenbergplatz 16, 1010 Wien - Mezzanin

Please register - contact: Ms. Brigitte Juchelka - brigitte.juchelka@gutmann.at - phone: +43-1-50220-357

Further information:

www.gutmann-center.at

and:

Dorothea Grimm Administrative Director Gutmann Center for Portfolio Management Department of Business Studies University of Vienna Phone: +43-1-4277-38186 Fax: +43-1-4277-38074 Mail: dorothea.grimm@univie.ac.at