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Networks in a Firm: Board of Directors

In: 45 Conversations About Behavioral Economics

Author

Listed:
  • Li Way Lee

    (Wayne State University)

  • Aaron Keathley

    (Wayne State University)

Abstract

In large firms, the separation of ownership and control (SOOC)separation of ownership and control (SOOC) goes much further: Owners delegate the task of monitoring the manager to another group called “Board of DirectorsBoard of Directors (BOD)” (BOD). Let's do a couple of things: (a) Draw the network picture of a firm with BOD, and (b) Look up the BOD of a big firm. Does the Chief Executive Officer (CEO) chair the BOD? Do you see conflict of interest in the arrangement?

Suggested Citation

  • Li Way Lee & Aaron Keathley, 2022. "Networks in a Firm: Board of Directors," Springer Books, in: 45 Conversations About Behavioral Economics, chapter 0, pages 15-17, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-05046-6_4
    DOI: 10.1007/978-3-031-05046-6_4
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