Abstract
Our model shows that it is optimal for shareholders to choose boards of directors whose preferences do not align with those of the shareholders. Such a board composition works as the shareholders' commitment to providing an incentive for risk-averse CEOs.
| Original language | English |
|---|---|
| Pages (from-to) | 846-852 |
| Number of pages | 7 |
| Journal | Economics Bulletin |
| Volume | 37 |
| Issue number | 2 |
| Publication status | Published - 2017 Apr 22 |
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
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Cite this
Orihara, M. (2017). Board independence and a shareholder's commitment. Economics Bulletin, 37(2), 846-852.