This paper investigates the effects of board of director collusion on managerial incentives and firm values. Recent … governance policies, such as managerial pay, and curbing competition. We study a model where managers can exert unobservable cost …-cutting effort and investigate the consequences of and the incentives for coordinating managerial pay among corporate boards …

with incentives through stock ownership remains a very effective corporate governance mechanism …

“agency-principal problem”. The incentives have not only been used to protect the principal from the self-interest of the …