EconPapers    
Economics at your fingertips  
 

Blockholders on Boards and CEO Compensation, Turnover and Firm Valuation

Anup Agrawal and Tareque Nasser ()
Additional contact information
Anup Agrawal: Culverhouse College of Business, University of Alabama, Tuscaloosa, 35487-0224, AL, USA
Tareque Nasser: 2097 BB, 1301 Lovers Lane, College of Business Administration, Kansas State University, Manhattan, 66506, KS, USA

Quarterly Journal of Finance (QJF), 2019, vol. 09, issue 03, 1-67

Abstract: We find that the presence of independent directors who are blockholders (IDBs) in firms promotes better CEO contracting and monitoring, and higher firm valuation. Using a panel of about 11,500 firm-years with a unique, hand-collected dataset on IDB-identity and a novel instrument, we find that firms with IDBs have lower excess CEO pay, lower flow and stock of CEO equity incentives, and higher valuations. These effects are substantial and robust. Our findings imply that by making it easier for blockholders to obtain a board seat, proxy access rules or bylaws can benefit shareholders.

Keywords: Boards of directors; blockholders; executive compensation; CEO turnover; firm valuation (search for similar items in EconPapers)
Date: 2019
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.worldscientific.com/doi/abs/10.1142/S2010139219500101
Access to full text is restricted to subscribers

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:wsi:qjfxxx:v:09:y:2019:i:03:n:s2010139219500101

Ordering information: This journal article can be ordered from

DOI: 10.1142/S2010139219500101

Access Statistics for this article

Quarterly Journal of Finance (QJF) is currently edited by Fernando Zapatero

More articles in Quarterly Journal of Finance (QJF) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().

 
Page updated 2020-12-08
Handle: RePEc:wsi:qjfxxx:v:09:y:2019:i:03:n:s2010139219500101