Corporations are the most important business form in the modern economy accounting for the vast preponderance of value added. Consequently, how well they function substantially determines how well the economy functions. Corporations are governed both by formal legal rules and by market pressures coming from product, labor, and capital markets, including the market for corporate control. In both legal and economic theory, shareholder interests should be foremost in corporate governance, meaning that the directors and managers of a corporation should always act in the shareholders' best interests. Economists justify this paramount consideration of shareholders' interests by citing the shareholders' status as the residual claimants to the corporation's profits. Economic theory and research also tell us that shareholders will be interested in very little other than stock returns. Thus, we would expect that, if directors of corporations make their decisions to retain or replace the corporation's CEO according to the best interests of shareholders, the performance of the corporation should be a critical factor and little else should matter.This resulted in data for 2532 cusips (missing only 67) and 27, 852 firm- years ( although 5151, or 18.5%, were blank). I manually coded for elimination of dual share issues that appear in the Compustat data. This manual code applies to only 18anbsp;...
|Title||:||CEO Entrenchment Versus Boards of Directors: Performance is Not All that Matters to Turnover|
|Publisher||:||ProQuest - 2008|