Excessive managerial entrenchment, corporate governance, and firm performance

被引：30
作者：
Antounian, Christelle [1 ]
Dah, Mustafa A. [1 ]
Harakeh, Mostafa [1 ]
机构：
[1] Lebanese Amer Univ LAU, Beirut, Lebanon
来源：
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE | 2021年 / 56卷
关键词：
CEO entrenchment; Corporate governance; Turnover-performance sensitivity; Managerial compensation; Firm performance; CEO COMPENSATION; EXECUTIVE-COMPENSATION; TAKEOVER DEFENSES; MANAGEMENT; TURNOVER; DIRECTORS; MARKET; BOARDS; COSTS; PAY;
D O I：
10.1016/j.ribaf.2021.101392
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This paper investigates the differential impact of positive and negative excessive managerial entrenchment on the CEO turnover-performance sensitivity, CEO compensation, and firm performance. We measure the degree of managerial entrenchment using the E-index introduced by Bebchuk et al. (2009). Our findings suggest that an increase in excess CEO entrenchment reduces the likelihood of CEO turnover due to poor performance. We also show a positive association between excessive entrenchment and CEO compensation as managers gain more power and authority when they are entrenched. On the other hand, excess CEO entrenchment has an inverse correlation with firm performance and firm value. Overall, we propose that excessive managerial entrenchment has a converse impact on board monitoring and shareholders' welfare.
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页数：12
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