Board Structures Around the World: an Experimental Investigation
Ann B. Gillette,
Thomas Noe () and
Michael J. Rebello
Review of Finance, 2008, vol. 12, issue 1, 93-140
Abstract:
We model and experimentally examine the board structure-performance relationship. We examine single-tiered boards, two-tiered boards, insider-controlled boards, and outsider-controlled boards. We find that even insider-controlled boards frequently adopt institutionally preferred rather than self-interested policies. Two-tiered boards adopt institutionally preferred policies more frequently but tend to destroy value by being too conservative, frequently rejecting good projects. Outsider-controlled single-tiered boards, both when they have multiple insiders and only a single insider, adopt institutionally preferred policies most frequently. In those board designs where the efficient Nash equilibrium produces strictly higher payoffs to all agents than the coalition-proof equilibria, agents tend to select the efficient Nash equilibria. Copyright 2008, Oxford University Press.
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (20)
Downloads: (external link)
http://hdl.handle.net/10.1093/rof/rfm027 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Board structures around the world: An experimental investigation (2008) 
Working Paper: Board structures around the world: An experimental investigation (2007) 
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:oup:revfin:v:12:y:2008:i:1:p:93-140
Ordering information: This journal article can be ordered from
https://academic.oup.com/journals
Access Statistics for this article
Review of Finance is currently edited by Marcin Kacperczyk
More articles in Review of Finance from European Finance Association Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().