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 |
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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)