|
|
|
|
||||
|
||||
Explicit vs. Implicit Contracts: Evidence from CEO Employment AgreementsStuart GillanUniversity of Georgia - Department of Banking and Finance Jay C. HartzellUniversity of Texas at Austin - Department of Finance Robert ParrinoUniversity of Texas at Austin - Department of Finance July 4, 2008 AFA 2006 Boston Meetings Abstract: We report evidence on the determinants of whether the relationship between a firm and its Chief Executive Officer (CEO) is governed by an explicit (written) or an implicit agreement. We find that fewer than half of the CEOs of S&P 500 firms have comprehensive explicit employment agreements. Consistent with contracting theory, explicit agreements are more likely to be observed, and are likely to have a longer duration, where the sustainability of the relationship is less certain and where the expected loss to the CEO is greater if the firm fails to honor the agreement.
Number of Pages in PDF File: 40 Keywords: Contracting, CEOs, corporate governance JEL Classification: G30, G34 working papers seriesDate posted: June 3, 2005 ; Last revised: July 26, 2008Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo6 in 0.500 seconds
