Prof. Markus Schmid

Markus Schmid is Professor of Corporate Finance at the University of St.Gallen and a Research Member at the European Corporate Governance Institute in Brussels. Professor Schmid is a regular speaker at leading academic conferences on finance and has been on the board of experts of zRating, a Swiss-focused proxy voting advisor, since 2018.

Professor Schmid studies the impact of CEO tenure on corporate valuation. His results cover all S&P 1500 firms and provide systematic evidence of a hump-shaped relationship between CEO tenure and market valuation. Interestingly, this hump is more pronounced in more dynamic industries and when CEOs are less adaptable to change. Further analysis shows that CEO entrenchment is not a rampant issue, as CEOs frequently leave their firms before the valuation peak is reached and those who remain often do so because there is no readily available better option to replace them. From an investor's perspective, regular CEO turnover can be valuable, but this does not imply that a fixed policy of CEO term limits would be helpful.

• Financial Markets
  • Financial Crises
  • Information and Market Efficiency
• Portfolio Management and Asset Classes
  • Behavioral Finance and Neurofinance
  • Personal Finance and Household Choices
• Financial Institutions
  • Institutional Investors and Funds
  • Pension Funds
• Corporate Finance and Governance
  • Capital Budgeting and Investment Policy
  • Corporate Governance and Managerial Compensation
  • Financial Risk and Risk Management
  • Financial Valuation
  • Financing Policy and Capital Structure
  • Mergers and Acquisitions
• Frontier Topics
  • Sustainable Finance