Kwon, Illoong; Guthrie, Katherine; Sokolowsky, Jan - University at Albany, SUNY, Department of Economics - 2008
Abstract: There are two views on board objectives: (i) boards act as monitors with the objective to maximize firms' long-term fundamental values; and (ii) boards act myopically with a focus on firms' short-term market values. We propose a principal-agent model linking CEO incentive pay to...