Abstract
This paper attempts to measure difference in firm performance caused by broad composition and ownership structure. These two variables are intended to measure the direct incentives and monitoring faced by top management. We also control for a number of otheк variables that are likely to be correlated with corporate performance. We do so to improve the precision of our estimates, as well as to eliminate much of the omitted-variable bias that has undoubtedly affected previous studies of board composition.
Keywords
IncentiveBusinessComposition (language)Industrial organizationEconomicsMicroeconomics
Related Publications
Higher market valuation of companies with a small board of directors
I present evidence consistent with theories that small boards of directors are more effective. Using Tobin's Q as an approximation of market valuation, I find an inverse associa...
Executive Motivations, Earnings, and Consequent Equity Performance
In this paper the financial incentives of executives are analyzed, theoretically and econometrically, with particular emphasis on the relationship between executive motivations ...
Management Ownership and Corporate Performance: An Empirical Analysis
We investigate the relation between management ownership and corporate performance, as measured by Tobin's Q.In a cross-section of Fortune 500 firms, Tobin's Q first increases a...
Managers, Owners, and The Pricing of Risky Debt: An Empirical Analysis
ABSTRACT This article examines managerial ownership structure and return premia on corporate bonds. It is argued that when managerial ownership is low, an increase in managerial...
To grow or to harvest? Governance, strategy and performance in family and lone founder firms
Abstract Purpose – This paper attempts to reconcile two opposing views of the strategies and conduct of closely held firms: that of entrepreneurship and that of family business....
Publication Info
- Year
- 1991
- Type
- article
- Volume
- 20
- Issue
- 4
- Pages
- 101-101
- Citations
- 2366
- Access
- Closed
External Links
Social Impact
Altmetric
PlumX Metrics
Social media, news, blog, policy document mentions
Citation Metrics
2366
OpenAlex
Cite This
Benjamin E. Hermalin,
Michael S. Weisbach
(1991).
The Effects of Board Composition and Direct Incentives on Firm Performance.
Financial Management
, 20
(4)
, 101-101.
https://doi.org/10.2307/3665716
Identifiers
- DOI
- 10.2307/3665716