The primary agency problem traditionally existing in the US corporation has been the risk of opportunism of managers vis-à-vis shareholders. By contrast, the primary concern in European corporations has been the risk of opportunism of controlling shareholders vis-à-vis minority shareholders....

This study examines how globalization of corporate governance practices influence the risk of European CEOs being dismissed. We argue that the harsh monitoring of the American corporate governance system spills over to the rest of the world as a result of this globalization. We focus on direct...