This study examines the impact of employee relations issues on the reputation of the board of directors and the executive officer (CEO). We utilize a unique, hand-collected dataset of employee disputes, including lawsuits, complaints, health and safety inspections, and wage-hour-benefit...

This article argues that workers should have representation on corporate boards of directors and explores the policy choices available in the U.S. context achieve the goal of worker representation. Effectively implementing such a reform requires consideration of key issues, including: how many...

Do employees benefit from worker representation on corporate boards? Economists and policymakers are keenly interested in this question – especially lately, as worker representation is widely promoted as an important way to ensure the interests and views of the workers. To investigate this...

This paper examines the role of bank representatives on the firm's board of directors and their influence on risk and managerial compensation. After the firm has taken on debt for a big-scale lump-sum investment project, the bank representatives are inclined to lower the project risk, which is...

This article argues that disparity in stature between the chief executive and other directors (for example, a 'star' CEO whose accomplishments and renown are much greater that the non-executive directors) can harm board performance and provides suggestions on how boards can maintain stature...

I analyze how boards of directors with heterogeneous preferences can affect the information shared with the CEO with the help of a cheap-talk model that allows for large groups of receivers. This paper provides new insights on how heterogeneity of boards can change the way of communication...

We investigate the relationship between board independence and firm's long-term performance, as measured by Tobin's q. In a longitudinal sample of 1,143 firms in the S&P 1500 list from 1997 through 2006, we find some evidence of a significant nonlinear relationship. Two of three nonlinear models...

We analyze how the reputational concerns of boards influence executive compensation and the use of hidden pay. Independent boards reduce disclosed pay to signal their independence, but are more likely to use inefficient hidden pay than manager-friendly boards. Stronger reputational pressures...

This paper provides a theoretical foundation for findings in empirical studies that document a positive association between conservatism and strong corporate governance through the board's monitoring efficiency. We construct a model with a board that decides whether to replace the incumbent...