|
Based on your IP address, your paper is being delivered by:
|
 |
 |
 |
 |
 |
New York, USA
Processing request.
|
Illinois, USA
Processing request.
|
Brussels, Belgium
Processing request.
|
Seoul, Korea
Processing request.
|
California, USA
Processing request.
|
If you have any problems downloading this paper,
please click on another Download Location above, or
File name: SSRN-id1736606. ; Size: 270K
|
|
Corporate Governance When Founders are Directors
Feng Li
University of Michigan at Ann Arbor - Stephen M. Ross School of Business
Suraj Srinivasan
Harvard Business School
December 23, 2010
Journal of Financial Economics, Forthcoming
Abstract:
We examine CEO compensation, CEO retention policies, and M&A decisions in firms where founders serve as a director with a non-founder CEO (founder-director firms). We find that founder-director firms offer a different mix of incentives to their CEOs than other firms. Pay for performance sensitivity for non-founder CEOs in founder-director firms is higher and the level of pay is lower than that of other CEOs. CEO turnover sensitivity to firm performance is also significantly higher in founder-director firms compared to non-founder firms. Overall, the evidence suggests that boards with founder-directors provide more high powered incentives in the form of pay and retention policies than the average U.S. board. Stock returns around M&A announcements and board attendance are also higher in founder-director firms compared to non-founder firms.
Number of Pages in PDF File: 51
Keywords: Founder, CEO compensation, CEO turnover, family firms, corporate governance, board of directors
JEL Classification: G3, G34
working papers series
Download This Paper
Date posted: August 23, 2010
; Last revised: January 9, 2011
Suggested CitationLi, Feng and Srinivasan, Suraj, Corporate Governance When Founders are Directors (December 23, 2010). Journal of Financial Economics, Forthcoming. Available at SSRN: http://ssrn.com/abstract=1663905 or http://dx.doi.org/10.2139/ssrn.1663905
|
| Feedback to SSRN (Beta) |
|
|
Paper statistics
Download Rank:
|
5,989
|
People who downloaded this paper also downloaded:
1.
Corporate Governance in the 2007-2008 Financial Crisis: Evidence from Financial Institutions Worldwide
By
David Erkens,
Mingyi Hung, ...
2.
The State of Corporate Governance Research
By
Lucian Bebchuk
and
Michael Weisbach
3.
Seven Myths of Corporate Governance
By
David Larcker
and
Brian Tayan
4.
The Impact of Corporate Social Responsibility on Investment Recommendations
By
Ioannis Ioannou
and
George Serafeim
5.
Corporate Governance and Firm Performance
By
Lawrence Brown
and
Marcus Caylor
6.
Corporate Governance Myths: Comments on Armstrong, Guay, and Weber
By
James Brickley
and
Jerold Zimmerman
7.
Corporate Social Responsibility and Access to Finance
By
Beiting Cheng,
Ioannis Ioannou, ...
8.
The Role of Information and Financial Reporting in Corporate Governance and Debt Contracting
By
Chris Armstrong,
Wayne Guay, ...
9.
Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure
By
Michael Jensen
and
William Meckling
10.
Behind the Scenes: The Corporate Governance Preferences of Institutional Investors
By
Joseph Mccahery,
Laura Starks, ...
|
|
|
|
