This study presents an integrated investigation into the factors affecting executive ownership, the market value of the finn, and executive compensation by explicitly incorporating the simultaneity of the process determining these variables into the empirical estimation, Overall, the results of...

We find that the presence of independent directors who are blockholders (IDBs) in firms promotes better CEO contracting and monitoring, and higher firm valuation. Using a panel of about 11,500 firm-years with a unique, hand-collected dataset on IDB-identity and a novel instrument, we find that...