Understanding Corporate Governance Through Learning Models of Managerial Competence
Fisher College of Business Working Paper No. 2014-03-04
Charles A. Dice Center Working Paper No. 2014-04
32 Pages Posted: 30 Mar 2014 Last revised: 18 Apr 2014
There are 2 versions of this paper
Understanding Corporate Governance Through Learning Models of Managerial Competence
Understanding Corporate Governance Through Learning Models of Managerial Competence
Date Written: March 27, 2014
Abstract
A manager’s shareholders, board of directors, and potential future employers are continually assessing his ability. A rich literature has documented that this insight has profound implications for corporate governance because assessment generates incentives (good and bad), introduces assorted risks, and affects the various battles that rage among the relevant actors for corporate control. Consequently, assessment (or learning) is a key perspective from which to study, evaluate, and possibly even regulate corporate governance. Moreover, because learning is a behavior notoriously subject to systematic biases, this perspective is a natural avenue through which to introduce behavioral and psychological insights into the study of corporate governance.
Keywords: Corporate Governance, Career Concerns, Learning and Assessment, Cognitive Biases
JEL Classification: G34, M12, D83, D81
Suggested Citation: Suggested Citation