Endogeneity and the Dynamics of Internal Corporate Governance

  title={Endogeneity and the Dynamics of Internal Corporate Governance},
  author={M. B. Wintoki and James S. Linck and J. Netter},
  journal={Journal of Financial Economics},
  • M. B. Wintoki, James S. Linck, J. Netter
  • Published 2007
  • Economics
  • Journal of Financial Economics
  • We use a well-developed dynamic panel generalized method of moments (GMM) estimator to alleviate endogeneity concerns in two aspects of corporate governance research: the effect of board structure on firm performance and the determinants of board structure. The estimator incorporates the dynamic nature of internal governance choices to provide valid and powerful instruments that address unobserved heterogeneity and simultaneity. We re-examine the relation between board structure and performance… CONTINUE READING
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