Directors, auditors and secretaries roles and corporate governance system: Identity theory perspective

Corporate Governance When Founders Are Directors

We examine the role of founders as directors by examining executive compensation, CEO retention policies, and M&A decisions in firms where founders serve as a director with a nonfounder CEO (founder-director). We find that founder-director firms offer a different mix of incentives to their CEO than other firms. Pay for performance sensitivity for non-founder CEOs in founder-director firms is al...

Corporate Governance: Theory and Practice

Various theories and philosophies have provided the foundation for the development of alternative forms of corporate governance systems around the world. Furthermore, as economies have evolved through time it appears that corporate executives have deviated from the sole objective of maximizing shareholders’ wealth. Owners of the capital have responded to these forces for the purpose of preservi...

Corporate Governance , Board of Directors , and Firm Performance

Corporate Governance and the Indonesian Financial System Corporate Governance and the Indonesian Financial System: A Comparative Perspective

Financial systems reform and corporate reform are deeply intertwined and thus are best addressed simultaneously and comprehensively. Indonesia is seeking to do this by developing rules, institutions, and mechanisms to achieve good corporate governance, while working to build an effectively functioning financial system that facilitates good corporate governance. This paper explores this quest in...

Corporate Governance and Innovation: Theory and Evidence

We develop a theory of the e¤ects of external corporate governance mechanisms — such as takeover pressure — and internal mechanisms — such as compensation contracts and monitoring intensity — on innovation. Our theory generates the following testable predictions: (i) innovation varies non-monotonically in a U-shaped manner with takeover pressure; (ii) innovation increases with monitoring intens...