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Persistent link: https://www.econbiz.de/10010371386
We argue that not all independent directors are equally effective in monitoring top management. Specifically, directors who are appointed by the CEO are likely to have stronger allegiance to the CEO and will be weaker monitors. To examine this hypothesis, we propose and empirically deploy two...
Persistent link: https://www.econbiz.de/10013069089
Persistent link: https://www.econbiz.de/10001654813
While the fraction of independent directors has been widely used as a proxy for monitoring effectiveness of the board, there are no clear-cut measures that capture the advising effectiveness of the board. We develop and validate two new measures of board advising: (i) per-outside-director...
Persistent link: https://www.econbiz.de/10013066659
In this paper, we survey the literature on corporate boards, with a specific focus on its primary functions of monitoring and advising the CEO. In particular, we consider how board structure and the individual directors’ characteristics, skill sets, connections, busyness, and incentives affect...
Persistent link: https://www.econbiz.de/10014352992