EconPapers    
Economics at your fingertips  
 

Board independence and a shareholder's commitment

Masanori Orihara ()
Additional contact information
Masanori Orihara: Waseda University

Economics Bulletin, 2017, vol. 37, issue 2, 846-852

Abstract: Our model shows that it is optimal for shareholders to choose boards of directors whose preferences do not align with those of the shareholders. Such a board composition works as the shareholders' commitment to providing an incentive for risk-averse CEOs.

Keywords: board of directors; commitment; contract enforceability (search for similar items in EconPapers)
JEL-codes: G3 (search for similar items in EconPapers)
Date: 2017-04-22
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2017/Volume37/EB-17-V37-I2-P75.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-16-00663

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().

 
Page updated 2018-09-29
Handle: RePEc:ebl:ecbull:eb-16-00663