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Do directors perform for pay?

  • Adams, Renée B.
  • Ferreira, Daniel

Many corporations reward their outside directors with a modest fee for each board meeting they attend. Using a large panel data set on director attendance behavior in publicly-listed firms for the period 1996-2003, we provide robust evidence that directors are less likely to have attendance problems at board meetings when board meeting fees are higher. This is surprising since meeting fees, on average roughly $1,000, represent an arguably small fraction of the total wealth of a representative director in our sample. Thus, corporate directors appear to perform for even very small financial rewards.

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File URL: http://www.sciencedirect.com/science/article/B6V87-4SVKSKX-1/2/3a4e96d0ff271ea7639b61c9567154d8
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Article provided by Elsevier in its journal Journal of Accounting and Economics.

Volume (Year): 46 (2008)
Issue (Month): 1 (September)
Pages: 154-171

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Handle: RePEc:eee:jaecon:v:46:y:2008:i:1:p:154-171
Contact details of provider: Web page: http://www.elsevier.com/locate/jae

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