6533b7dcfe1ef96bd1271c69
RESEARCH PRODUCT
CEOs entrenchment and shareholders' wealth
Benoît Pigésubject
ComputingMilieux_THECOMPUTINGPROFESSIONenracinement;dirigeants;performance;gouvernement d'entreprise[SHS.GESTION]Humanities and Social Sciences/Business administrationjel:G30ComputingMilieux_LEGALASPECTSOFCOMPUTING[SHS.GESTION] Humanities and Social Sciences/Business administrationentrenchment;CEO;performance;corporate governance.description
In the agency relation between the shareholders and the CEO, everybody try toreinforce his or her position. For the CEO, it means the pursuit of a betterentrenchment, which allows him to reduce the risk of being dismissed. Theentrenchment model develops the importance for the CEO to get internal or externalconnections and to make efforts in order to attain a higher performance. From a sampleof 1747 annual observations concerning 258 CEOs of public firms for the 1966-1990period, empirical measures allow us to estimate the importance of internal networksand past performance by establishing a measure of CEO entrenchment. Furthermore,we observed, for the shareholders, the existence of an optimum of CEO entrenchmentwhich could give a better shareholder return as compared to the market.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 1998-09-01 |