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Industry Effects on the Use of Board and Institutional Investor Monitoring and Executive Incentive Compensation

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Listed:
  • Kor, Yasemin Y.

    (U of Delaware)

  • Watson, Sharon

    (U of Delaware)

  • Mahoney, Joseph T.

    (U of Illinois at Urbana-Champaign)

Abstract

This paper develops and empirically tests a theory of the use of board and institutional investor monitoring and the use of executive incentive compensation under different types of uncertainty in the industry. This empirical examination is based on a sample of U.S. firms operating in a wide range of industries. Practical implications derived from this paper direct the attention of both shareholders and governance specialists to critical tradeoffs involved in the use of specific governance mechanisms under demand, competitive, and technological uncertainty.

Suggested Citation

  • Kor, Yasemin Y. & Watson, Sharon & Mahoney, Joseph T., 2004. "Industry Effects on the Use of Board and Institutional Investor Monitoring and Executive Incentive Compensation," Working Papers 04-0108, University of Illinois at Urbana-Champaign, College of Business.
    • Handle: RePEc:ecl:illbus:04-0108
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    File URL: http://www.business.illinois.edu/Working_Papers/papers/04-0108.pdf
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    References listed on IDEAS

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    1. Wang, Heli & Chen, Wei-Ru, 2010. "Is firm-specific innovation associated with greater value appropriation? The roles of environmental dynamism and technological diversity," Research Policy, Elsevier, vol. 39(1), pages 141-154, February.

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