Overview
Shows that director compensation is mainly consistent with firm’s needs for monitoring and advising
Assesses the impact of firm and industry characteristics on the effectiveness of specific governance structures
Examines the relationship between director compensation structure and shareholder interests in the context of acquisitions
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Table of contents (4 chapters)
Keywords
About this book
Corporate governance, a subject that a few decades ago escaped the attention of all but a handful of academics and shareholders, has gradually become a central concern worldwide. This book contributes to the existing literature on the structure and effectiveness of corporate boards. It comprises three topics that address distinct research questions on board structure, the deployment of board resources to monitoring and advisory duties, and the use of equity-based incentives in the compensation packages of directors. Firstly, the book provides strong new evidence on the importance of corporate board functions in value creation. Secondly, it provides some evidence of the potential conflict between the two primary functions of corporate boards. The results indicate that while the board’s advising quality weakens when the board is principally devoted to monitoring duties, the presence of advisory directors on the board does not have any impact on the effectiveness of board oversight, which offers a more complete view on the tradeoffs between the board’s two major functions. Finally, the results suggest that the closer directors' compensation is tied to the firm's stock, the more consistent corporate acquisition decisions are with shareholder interests.
Reviews
“This excellent book provides fascinating evidence showing that corporate boards matter. Boards have been at the center of corporate governance reforms in the last two decades, and Ismail Lahlou’s book helps understand why. It offers a fantastic source for readers interested in the optimal role, functioning, and composition of boards.” (Ulrich Hege, Professor of Finance and Economics, Toulouse School of Economics, France)
Authors and Affiliations
About the author
Ismail Lahlou is an Associate Professor of Finance at the University of Burgundy, France. He is also a Research Associate in Corporate Finance at the Management of Organizations Research Centre. Lahlou earned his Ph.D. from the University of Rennes and was a visiting scholar at HEC Paris. His research interests are corporate finance, corporate governance, board of directors and director compensation. He teaches corporate finance, corporate governance, and financial management.
Bibliographic Information
Book Title: Corporate Board of Directors
Book Subtitle: Structure and Efficiency
Authors: Ismail Lahlou
DOI: https://doi.org/10.1007/978-3-030-05017-7
Publisher: Palgrave Macmillan Cham
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2018
Hardcover ISBN: 978-3-030-05016-0Published: 12 January 2019
Softcover ISBN: 978-3-030-40545-8Published: 18 February 2020
eBook ISBN: 978-3-030-05017-7Published: 26 December 2018
Edition Number: 1
Number of Pages: XVIII, 204
Number of Illustrations: 2 b/w illustrations, 2 illustrations in colour
Topics: Corporate Finance, Corporate Governance