We find a significant hump-shaped relation between firm valuation and CEO ownership when external governance (EG) is weak, but the relation is insignificant when EG is strong. These interactive effects are identified while controlling for firm-fixed effects. The results imply that CEO ownership...

When regulation forces a board to become more independent than endogenously determined, the CEO may counteract by strengthening connectedness with other key players governing the firm. We find the independent board regulation triggered an increase in the fraction of top-executives appointed...

This paper investigates how personal connections influencing governance in executive suites are impacted by other governance mechanisms. We use the independent board requirement as an exogenous shock reducing CEO influence in the boardroom. CEOs of the treated firms recoup the loss of influence...