Director Undervaluation, Board Evolution, and Firm Performance

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

1 Board Diversity and Firm Performance Volatility

Diverse directors may have diverse preferences over firms’ policies or even objectives. As shown by Arrow (1951), diverse individual preferences may fail to univocally aggregate in collective preferences and may consequently lead to arbitrary and volatile decisions. Using the board of directors as a laboratory, we test whether diversity leads to higher performance volatility. We show that firms...

Board Monitoring and Firm performance: Controlling for Endogeneity and Multicollinearity

Purpose of this study is to investigate the relation between board monitoring and firm performance after controlling the endogeneity and multicollinearity problem that exist in most corporate governance research. Prior studies failed to establish any significant relationship between board monitoring and firm performance because of not properly control for endogeneity and multicollinearity probl...

Board Independence, Ownership Structure and Firm Performance: Evidence from Pakistan

The present study carried out to examine the relationship between ownership structure, board independence and firm performance of eighty listed firms at KSE for the period of 2005-2009. Performance is evaluated with the help of market based and accounting based performance measures. Marris ratio and Tobin‟s Q are used as estimators of market performance, while ROA, ROE has been used as accounti...