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Journal ArticleDOI

Do outside directors monitor managers

John Byrd, +1 more
- 01 Oct 1992 - 
- Vol. 32, Iss: 2, pp 195-221
TLDR
In this article, the authors categorize outside directors as either independent of or having some affiliation with managers, and find that bidding firms on which independent outside directors hold at least 50% of the seats have significantly higher announcement-date abnormal returns than other bidders.
About
This article is published in Journal of Financial Economics.The article was published on 1992-10-01. It has received 1694 citations till now. The article focuses on the topics: Tender offer & Bidding.

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Citations
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Higher market valuation of companies with a small board of directors

TL;DR: In this paper, the authors present evidence consistent with theories that small boards of directors are more effective, using Tobin's Q as an approximation of market valuation, and find an inverse association between board size and firm value in a sample of 452 large U.S. industrial corporations.
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Corporate governance, chief executive officer compensation, and firm performance

TL;DR: This article found that measures of board and ownership structure explain a significant amount of cross-sectional variation in CEO compensation, after controlling for standard economic determinants of pay, and that CEOs earn greater compensation when governance structures are less effective.
Journal ArticleDOI

Audit committee, board of director characteristics, and earnings management

TL;DR: In this paper, the authors examined whether audit committee and board characteristics are related to earnings management by the firm and found a negative relation between audit committee independence and abnormal accruals.
Posted Content

Boards of Directors as an Endogenously Determined Institution: A Survey of the Economic Literature

TL;DR: This article surveys the economic literature on boards of directors and finds that board composition is not related to corporate performance, while board size has a negative relation with corporate performance and boards appear to evolve over time as a function of the bargaining power of the CEO relative to the existing directors.
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The Effects of Board Composition and Direct Incentives on Firm Performance

TL;DR: In this paper, the authors measure difference in firm performance caused by broad composition and ownership structure and control for a number of otheк variables that are likely to be correlated with corporate performance.
References
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Journal ArticleDOI

Theory of the firm: Managerial behavior, agency costs and ownership structure

TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
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Separation of ownership and control

TL;DR: The authors argue that the separation of decision and risk-bearing functions observed in large corporations is common to other organizations such as large professional partnerships, financial mutuals, and nonprofits. But they do not consider the role of decision agents in these organizations.
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Agency Problems and the Theory of the Firm

TL;DR: In this article, the authors explain how the separation of security ownership and control, typical of large corporations, can be an efficient form of economic organization, and set aside the presumption that a corporation has owners in any meaningful sense.
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Management Ownership and Market Valuation: An Empirical Analysis

TL;DR: This article investigated the relationship between management ownership and market valuation of the firm, as measured by Tobin's Q. In a 1980 cross-section of 371 Fortune 500 firms, they found evidence of a significant nonmonotonic relationship.
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Additional evidence on equity ownership and corporate value

TL;DR: The authors investigated the relation between Tobin's Q and the structure of equity ownership for a sample of 1,173 firms for 1976 and 1,093 firms for 1986 and found a significant curvilinear relation between Q and common stock owned by corporate insiders.
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