Managerial Legacies, Entrenchment, and Strategic Inertia
نویسندگان
چکیده
منابع مشابه
Managerial Entrenchment with Strategic Information Technology: A Dynamic Perspective
Some economic and informational problems associated with organizational information technology (It) spending may be attributed to managerial rent-seeking. Because of the unavoidable incompleteness of labor contracts, managers with misaligned incentives and budgetary discretion could entrench themselves through their non-value-maximizing adoption decisions. In order to boost their bargaining pow...
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We consider a “managerial optimal” framework for top executive compensation, where top management sets their own compensation subject to limited entrenchment, instead of the conventional setting where such compensation is set by a board that maximizes firm value. Top management would like to pay themselves as much as possible, but are constrained by the need to ensure sufficient efficiency to a...
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ABSTRACT Many economic and informational problems associated with corporate IT spending can be attributed to managerial rent-seeking. IT managers with misaligned incentives and budgetary discretion often entrench themselves through their non-value-maximizing investment decisions. In order to boost their bargaining power in future contract renegotiation, they invest excessively in IT projects th...
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This paper investigates whether the family status of a company’s top officer affects managerial replacement decisions in UK firms. We report evidence that family firms are characterized by higher levels of board control and weak internal governance in the form of independent company board structures. Consistent with a managerial entrenchment hypothesis, we find evidence that family CEOs are les...
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CEOs are infrequently fired for poor performance (Jensen and Murphy, 1990). While financial distress is associated with higher managerial turnover, studies show that incumbent managers often retain control of the firm even in bankruptcy. In this paper, we study how inalienable managerial entrenchment – when it is costly to fire a manager even after poor performance – affects a manager's ability...
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ژورنال
عنوان ژورنال: The Journal of Finance
سال: 2010
ISSN: 0022-1082
DOI: 10.1111/j.1540-6261.2010.01619.x