Work

Trends in Corporate Governance

Year: 2005

Type: article

Abstract: ABSTRACT The popular press and scholarly studies have noted a number of trends in corporate governance. This article addresses, from a theoretical perspective, whether these trends are linked. And, if so, how? The article finds that a trend toward greater board diligence will lead, sometimes through subtle or indirect mechanisms, to trends toward more external candidates becoming CEO, shorter tenures for CEOs, more effort/less perquisite consumption by CEOs (even though such behavior is not directly monitored), and greater CEO compensation. An additional prediction is that, under plausible conditions, externally hired CEOs should have shorter tenures, on average, than internally hired CEOs.

Source: The Journal of Finance

DOI: 10.1111/j.1540-6261.2005.00801.x

Author: BENJAMIN E. HERMALIN

Institutions: University of British Columbia, University of California, Berkeley

Language: English

Topic: Corporate Finance and Governance

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W3125947162

FWCI: 43.96

Cites: 36

Cited by: 530

Related to: 10