Board Quotas and Director-Firm Matching

Board of director collusion, managerial incentives and firm values

This paper investigates the effects of board of director collusion on managerial incentives and firm values. Recent academic research hints at the social network of board of directors as an important conduit for coordinating corporate governance policies, such as managerial pay, and curbing competition. We study a model where managers can exert unobservable cost-cutting effort and investigate t...

The influence of board of director networks and corporate governance on firm performance and CEO compensation

Director Resignations, Firm Size and Signalling Effects

It is often difficult to predict how a change in a firm’s corporate governance structure will affect the future value of the firm. We examine what factors are associated with the level of stock market uncertainty surrounding a change in composition of the board of directors by investigating the variations in market reaction to a director resignation announcement. Market uncertainty is measured ...

Board Involvement, Director Expertise and Executive Incentives

Boards of directors have become more involved in monitoring and advising top management. We investigate how board involvement affects executive incentives in a project investment setting. To increase the probability of project success, the CEO engages in a sequence of tasks: first acquiring information to evaluate a potential project, then reporting his assessment of the project to the board, a...

Local Director Talent and Board Governance

This paper examines the effects of director labor markets at firm headquarter locations on board governance. We argue that firms can implement better board governance by drawing on local director talent when a larger pool of prospective directors (officers and directors of same-industry firms, financial institutions, and universities) is located near the firm. We find that firms located near la...