A revised version of this paper, titled "Board bias, information, and investment efficiency," is available here: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3965147A CEO who is an empire-builder reports information about an investment opportunity ("project"). Before approving or...

In their role as initiators of new business projects, CEOs have an advantage over access to and control over project-related information. This exacerbates pre-existing agency frictions and may lead to investment inefficiencies. To counteract this challenge, incentive compensation for corporate...

The board of directors performs the dual role of monitoring and advising the firm’s management. At times it makes certain key decisions itself. We study the optimal board composition (of monitoring and advisory “types”) within a cheap-talk framework where the CEO and the board each may...