Corpus ID: 15624887

Unintended Consequences of the Independent Board Requirement on CEO Power

@inproceedings{Kim2010UnintendedCO,
  title={Unintended Consequences of the Independent Board Requirement on CEO Power},
  author={E. H. Kim and Yao Lu},
  year={2010}
}
  • E. H. Kim, Yao Lu
  • Published 2010
  • NYSE and NASDAQ listed firms are required to have a majority of independent directors starting 2004. Since the regulation can weaken CEO influence over the board, affected CEOs may counter it by building a closely aligned team of top executives to strengthen their structural power. Using a differences-indifferences approach, we find that affected CEOs fill their executive suites with significantly higher abnormal fractions of top executives hired or promoted during their tenure, and with… CONTINUE READING

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