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This paper studies how hedge fund activism reshapes board monitoring, CEO incentives and compensation. I find that activists target CEOs who have co-opted the board, have poor performance records and weak equity portfolio incentives, are less subject to relative performance evaluation (RPE) but...
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CEO incentives to mitigate the risk-shifting incentives of firm managers …
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This paper analyzes how board independence affects a board's monitoring intensity and the CEO pay disparity. We consider a corporate tournament model with a novel feature that the board of directors may lack independence. This has significant implications for a board's monitoring and rewarding...
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, reducing managers' informational advantage and opportunities for private benefits leading executives to seek increased explicit … compensation. Alternatively, more disclosure allows shareholders to better observe managers' effort and evaluate their ability … find results consistent with compensation increasing after IFRS adoption implying a net reduction in managers …
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public disclosures and share price. Employees can leverage private information. Non-executive managers in particular can …
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