This article studies director additions and removals for S&P 500 firms during the period 2000 to 2003. It finds that firms with smaller board size than estimated efficient levels add more and remove fewer directors than firms with larger board size. It also finds that firms with lower board...

An agent may manipulate information when transmitting it to the principal. A direct response to this problem is to verify the information. The paper explores a situation where the principal engages in information verification herself or alternatively delegates it to the agent. The paper finds...

Examining stock-based compensation for newly hired CEOs, this article finds that the sensitivity of stock-based pay to performance is higher for new economy, young and volatile firms. Of the components of stock-based pay, it is option grants that generate such variation across firms. It also...