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when agency conflict between shareholders and creditors is severe. By comparing firms that have experienced creditor …, dominated by shareholders, is insufficient. We also find that the association is stronger for firms with more severe shareholder …
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This paper analyzes the reputational effects of forced CEO turnovers on outside directors. Directors interlocked to a forced CEO turnover experience large and persistent increases in withheld votes at subsequent re-elections relative to non-turnover-interlocked directors. Reputational losses are...
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mechanism is that the use of short-term incentives enables informed incumbent shareholders to commit to using their private … information to intervene (voice) instead of selling their shares (exit). Without a commitment to voice, incumbent shareholders … incumbent shareholders and their ability to profit from exit. Effectively, short-term compensation serves as a commitment device …
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