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Industry Effects on the Use of Board and Institutional Investor Monitoring and Executive Incentive Compensation

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Author Info
Kor, Yasemin Y. (U of Delaware)
Watson, Sharon (U of Delaware)
Mahoney, Joseph T. (U of Illinois at Urbana-Champaign)
Abstract

This paper develops and empirically tests a theory of the use of board and institutional investor monitoring and the use of executive incentive compensation under different types of uncertainty in the industry. This empirical examination is based on a sample of U.S. firms operating in a wide range of industries. Practical implications derived from this paper direct the attention of both shareholders and governance specialists to critical tradeoffs involved in the use of specific governance mechanisms under demand, competitive, and technological uncertainty.

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Paper provided by University of Illinois at Urbana-Champaign, College of Business in its series Working Papers with number 04-0108.

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Date of creation: 2004
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Handle: RePEc:ecl:illbus:04-0108

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  1. Stéphane Lhuillery, 2006. "The impact of corporate governance practices on R&D efforts: a look at shareholders’ rights, cross-listing and control pyramid," CEMI Working Papers cemi-report-2006-006, Ecole Polytechnique Fédérale de Lausanne, Collège du Management de la Technologie, Management of Technology and Entrepreneurship Institute, Chaire en Economie et Management de l'Innovation, revised Apr 2009. [Downloadable!]
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