A Theory of Corporate Boards and Forced CEO Turnover

Published Online:https://doi.org/10.1287/mnsc.2017.2762

References

  • Acharya V, Myers S, Rajan R (2011) The internal governance of firms. J. Finance 66(3):689–720.CrossrefGoogle Scholar
  • Adams R, Ferreira D (2007) A theory of friendly boards. J. Finance 62(1):217–250.CrossrefGoogle Scholar
  • Albrecht J, Anderson A, Vroman S (2010) Search by committee. J. Econom. Theory 145(4):1386–1407.CrossrefGoogle Scholar
  • Allen MP (1981) Managerial power and tenure in the large corporation. Soc. Forces 60(2):482–494.CrossrefGoogle Scholar
  • Almazan A, Suarez J (2003) Entrenchment and severance pay in optimal governance structures. J. Finance 58(2):519–547.CrossrefGoogle Scholar
  • Austen-Smith D, Banks JS (1996) Information aggregation, rationality, and the Condorcet jury theorem. Amer. Political Sci. Rev. 90(1):34–45.CrossrefGoogle Scholar
  • Austen-Smith D, Feddersen T (2005) Deliberation and voting rules. Austen-Smith D, Duggan J, eds. Social Choice and Strategic Decisions: Essays in Honor of Jeffrey S. Banks (Springer, Berlin),269–316.CrossrefGoogle Scholar
  • Baranchuk N, Dybvig P (2009) Consensus in diverse corporate boards. Rev. Financial Stud. 22(2):715–747.CrossrefGoogle Scholar
  • Bellow G, Minow M (1998) Law Stories (University of Michigan Press, Ann Arbor).Google Scholar
  • Benoît JP, Dubra J (2006) Information revelation in auctions. Games Econom. Behav. 57(2):181–205.CrossrefGoogle Scholar
  • Bhagat S, Black B (2001) The non-correlation between board independence and long-term firm performance. J. Corporation Law 27(2):231–273.Google Scholar
  • Boone AL, Field LC, Karpoff JM, Raheja CG (2007) The determinants of corporate board size and composition: An empirical analysis. J. Financial Econom. 85(1):66–101.CrossrefGoogle Scholar
  • Che Y, Kartik N (2009) Opinions as incentives. J. Political Econom. 117(5):815–860.CrossrefGoogle Scholar
  • Chemmanur T, Yan A (2009) Product market advertising and new equity issues. J. Financial Econom. 92(1):40–65.CrossrefGoogle Scholar
  • Coles J, Daniel N, Naveen L (2008) Boards: Does one size fit all? J. Financial Econom. 87(2):329–356.CrossrefGoogle Scholar
  • Coughlan P (2000) In defense of unanimous jury verdicts: Mistrials, communication, and strategic voting. Amer. Political Sci. Rev. 94(2):375–393.CrossrefGoogle Scholar
  • Crawford V, Sobel J (1982) Strategic information transmission. Econometrica 50(6):1431–1451.CrossrefGoogle Scholar
  • Dewally M, Peck SW (2010) Upheaval in the boardroom: Outside director public resignations, motivations, and consequences. J. Corporate Finance 16(1):38–52.CrossrefGoogle Scholar
  • Doraszelski U, Gerardi D, Squintani F (2003) Communication and voting with double-sided information. BE J. Theoret. Econom. 3(1):1–41.Google Scholar
  • Engers M (1987) Signalling with many signals. Econometrica 55(3):663–674.CrossrefGoogle Scholar
  • Ertugrul M, Krishnan K (2011) Can CEO dismissals be proactive? J. Corporate Finance 17(1):134–151.CrossrefGoogle Scholar
  • Fedaseyeu V, Linck J, Wagner H (2016) Do qualifications matter? New evidence on outside director compensation. Working paper, Bocconi University, Milan.Google Scholar
  • Fudenberg D, Tirole J (1991) Perfect Bayesian equilibrium and sequential equilibrium. J. Econom. Theory 53(2):236–260.CrossrefGoogle Scholar
  • Gillette A, Noe T, Rebello M (2003) Corporate board composition, protocols, and voting behavior: Experimental evidence. J. Finance 58(5):1997–2031.CrossrefGoogle Scholar
  • Grinblatt M, Hwang CY (1989) Signalling and the pricing of new issues. J. Finance 44(2):393–420.CrossrefGoogle Scholar
  • Harris M, Raviv A (2008) A theory of board control and size. Rev. Financial Stud. 21(4):1797–1832.CrossrefGoogle Scholar
  • Harsanyi JC, Selten R (1988) A General Theory of Equilibrium Selection in Games (MIT Press, Cambridge, MA).Google Scholar
  • Hermalin B, Weisbach M (1998) Endogenously chosen boards of directors and their monitoring of the CEO. Amer. Econom. Rev. 88(1):96–118.Google Scholar
  • Hirshleifer D, Thakor A (1994) Managerial performance, boards of directors and takeover bidding. J. Corporate Finance 1(1):63–90.CrossrefGoogle Scholar
  • Jiang W, Wan H, Zhao S (2016) Reputation concerns of independent directors: Evidence from individual director voting. Rev. Financial Stud. 29(3):655–696.Google Scholar
  • Landier A, Sraer D, Thesmar D (2009) Optimal dissent in organizations. Rev. Econom. Stud. 76(2):761–794.CrossrefGoogle Scholar
  • Levit D, Malenko N (2016) The labor market for directors and externalities in corporate governance. J. Finance 71(2):775–808.CrossrefGoogle Scholar
  • Linck J, Netter J, Yang T (2008) The determinants of board structure. J. Financial Econom. 87(2):308–328.CrossrefGoogle Scholar
  • Lorsch J, MacIver E (1994) Pawns or Potentates? The Reality of America’s Corporate Boards (Harvard Business School Press, Boston).Google Scholar
  • Lublin JS (2009) Reimbursements aim for a fairer proxy fight. Wall Street Journal (October 27), A22.Google Scholar
  • Mace M (1971) Directors: Myth and Reality (Harvard Business School Press, Boston).Google Scholar
  • Malenko N (2014) Communication and decision-making in corporate boards. Rev. Financial Stud. 27(5):1486–1532.CrossrefGoogle Scholar
  • Marshall CD (2010) Are dissenting directors rewarded? Working paper, Indiana University, Bloomington.CrossrefGoogle Scholar
  • Mikkelson W, Partch M, Shah K (1997) Ownership and operating performance of companies that go public. J. Financial Econom. 44(3):281–307.CrossrefGoogle Scholar
  • Milgrom P, Roberts J (1986) Price and advertising signals of product quality. J. Political Econom. 94(4):796–821.CrossrefGoogle Scholar
  • Miller MH, Rock K (1985) Dividend policy under asymmetric information. J. Finance 40(4):1031–1051.CrossrefGoogle Scholar
  • Moldovanu B, Shi X (2013) Specialization and partisanship in committee search. Theoret. Econom. 8(3):751–774.CrossrefGoogle Scholar
  • Palfrey TR, Srivastava S (1991) Nash implementation using undominated strategies. Econometrica 59(2):479–501.CrossrefGoogle Scholar
  • Parrino R (1997) CEO turnover and outside succession a cross-sectional analysis. J. Financial Econom. 46(2):165–197.CrossrefGoogle Scholar
  • Raheja C (2005) Determinants of board size and composition: A theory of corporate boards. J. Financial Quant. Anal. 40(2):283–306.CrossrefGoogle Scholar
  • Rock RH (2004) Secret ballot. Directors & Boards 28(4):1.Google Scholar
  • Schwartz-Ziv M, Weisbach MS (2013) What do boards really do? Evidence from minutes of board meetings. J. Financial Econom. 108(2):349–366.CrossrefGoogle Scholar
  • Song F, Thakor A (2006) Information control, career concerns, and corporate governance. J. Finance 61(4):1845–1896.CrossrefGoogle Scholar
  • Taylor L (2010) Why are CEOs rarely fired? Evidence from structural estimation. J. Finance 65(6):2051–2087.CrossrefGoogle Scholar
  • Tejada C (1997) Longtime Tandy director quits board, says he was punished for faulting CEO. Wall Street Journal (January 16).Google Scholar
  • Warther VA (1998) Board effectiveness and board dissent: A model of the board’s relationship to management and shareholders. J. Corporate Finance 4(1):53–70.CrossrefGoogle Scholar
  • Weisbach M (1988) Outside directors and CEO turnover. J. Financial Econom. 20(January–March):431–460.CrossrefGoogle Scholar
  • Working Group on Corporate Governance (1995) A new compact for owners and directors. Monks RAG, Minow N, eds. Corporate Governance (Basil Blackwell, Oxford, UK).Google Scholar
  • Yermack D (1996) Higher market valuation for firms with a small board of directors. J. Financial Econom. 40(2):185–211.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.