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Outside directors, board independence, and shareholder wealth☆

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TLDR
In this article, the authors examine the wealth effects surrounding outside director appointments and find no clear evidence that outside directors of any particular occupation are more or less valuable than others, consistent with the hypothesis that outside board members are chosen in the interest of shareholders.
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This article is published in Journal of Financial Economics.The article was published on 1990-08-01. It has received 2031 citations till now. The article focuses on the topics: Shareholder & Independence.

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Implementation of Enterprise Risk Management: Evidence from the German Property-Liability Insurance Industry

TL;DR: In this article, the authors examined the implementation of ERM components by insurers and found significant increases in the extent to which ERM is being implemented by these firms and details the sequence of implementation of this evolving risk management process.
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Governance structure and the weighting of performance measures in CEO compensation

TL;DR: The authors empirically examine how governance structure affects the design of executive compensation contracts and in particular, the implicit weights of firm performance measures in CEO's compensation, and find that compensation contracts in firms with higher takeover protection and where the CEO has more influence on governance decisions put more weight on accounting-based measures of performance (return on assets) compared to stock-based performance measures (market returns).
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Corporate Control Through Board Dismissals and Takeovers

TL;DR: In this article, the authors examine some policy issues related to the interaction between internal and external corporate control mechanisms (board dismissals and takeovers) by focusing on the information aggregation and other effects related to this interaction.
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Board Independence and Corporate Governance: Evidence From Director Resignations

TL;DR: In this article, the authors examine board member resignation announcements and their perceived importance in the context of firms' existing governance structures and find that outside director resignations appear to send negative signals to market participants.
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Corporate Governance Reforms: Redefined Expectations of Audit Committee Responsibilities and Effectiveness

TL;DR: In this article, the authors discuss the new expectations of audit committee responsibilities and effectiveness in the wake of corporate governance reforms, key challenges, "whistleblower" provisions and shortcomings and provide some directions for future research.
References
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Journal ArticleDOI

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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Using daily stock returns: The case of event studies

TL;DR: In this paper, the authors examine properties of daily stock returns and how the particular characteristics of these data affect event study methodologies and show that recognition of autocorrelation in daily excess returns and changes in their variance conditional on an event can sometimes be advantageous.
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Outside directors and CEO turnover

TL;DR: This article examined the relation between the monitoring of CEOs by inside and outside directors and CEO resignations using stock returns and earnings changes as measures of prior performance, and found that there is a stronger association between prior performance and the probability of a resignation.
Posted Content

Two Agency-Cost Explanations of Dividends

TL;DR: In this article, the authors consider the problem of aligning managers' interests with those of investors and offer agency-cost explanations of dividends, and conclude that "these two lines of inquiry rarely meet." Yet logically any dividend policy should be designed to minimize the sum of capital, agency and taxation costs.
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