Classified boards, firm value, and managerial entrenchment
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A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity
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Corporate Governance and Equity Prices
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Outside directors and CEO turnover
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Boards: Does one size fit all☆
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A Simple Approximation of Tobin's q
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Executive compensation, management turnover, and firm performance
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The costs of entrenched boards
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An Examination of Long‐Term Abnormal Stock Returns and Operating Performance Following R&D Increases
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Ownership structure and top executive turnover
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Board leadership structure and CEO turnover
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Corporate research and development expenditures and share value
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OUTSIDE DIRECTORS AND CEO TURNOVER
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Block Share Purchases and Corporate Performance
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Shark repellents and stock prices
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Self-citationManagerial Equity Ownership and the Demand for Outside Directors
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Corporate Governance Out of Focus: The Debate Over Classified BoardsPreprint
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What Matters in Corporate Governance?
Bebchuk, L., Cohen, A., & Ferrell, A. (2009) · Review of Financial Studies · doi:10.1093/rfs/hhn099 · Cited by 2,906 · see citing works
The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey
Adams, R. B., Hermalin, B. E., & Weisbach, M. S. (2010) · Journal of Economic Literature · doi:10.1257/jel.48.1.58 · Cited by 2,368 · see citing works
The Gender and Ethnic Diversity of US Boards and Board Committees and Firm Financial Performance
Carter, D. A., D’Souza, F. P., Simkins, B. J., & Simpson, W. G. (2010) · Corporate Governance An International Review · doi:10.1111/j.1467-8683.2010.00809.x · Cited by 1,853 · see citing works
“Multiple studies show that asset size is related to Tobin’s Q (Faleye, 2007; Prevost et al., 2002; Yermack, 1996).”
BackgroundColes, J. L., Daniel, N. D., & Naveen, L. (2010) · Review of Financial Studies · doi:10.1093/rfs/hhu011 · Cited by 1,000 · see citing works
Hwang, B., & Kim, S. (2009) · Journal of Financial Economics · doi:10.1016/j.jfineco.2008.07.005 · Cited by 933 · see citing works
“Board consultants in the popular press broach this issue, saying that when directors debate whether or how to fire a CEO, ‘‘they [the directors] typically need the most help in dealing with their attachment to the CEO’’ (Business Week, 2007), and academic studies find weaker sensitivity of turnover to performance with…”
InfluentialThe incentives for tax planning
Armstrong, C., Blouin, J. L., & Larcker, D. F. (2011) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2011.04.001 · Cited by 863 · see citing works
“32 Next, we use data from FactSet SharkRepellent to measure board structure similar to Gompers et al. (2003), Daines and Klausner (2001), Bebchuk and Cohen (2005), and Faleye (2007).”
MethodThe costs of intense board monitoring
Faleye, O., Hoitash, R., & Hoitash, U. (2011) · Journal of Financial Economics · doi:10.1016/j.jfineco.2011.02.010 · Cited by 821 · see citing works
“Faleye et al. / Journal of Financial Economics 101 (2011) 160–181 161”
Self-citationDo corporate governance characteristics influence tax management?
Minnick, K., & Noga, T. J. (2010) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2010.08.005 · Cited by 612 · see citing works
“Bebchuk and Cohen (2005) and Faleye (2007) argue that staggered boards protect management from removal.”
BackgroundCorporate governance and firm value: International evidence
Ammann, M. J., Oesch, D., & Schmid, M. M. (2010) · Journal of Empirical Finance · doi:10.1016/j.jempfin.2010.10.003 · Cited by 495 · see citing works
“(Yermack, 1996), equity capital structure (e.g., Gompers, Ishii, and Metrick, 2010), or whether the board is classified (e.g., Faleye, 2007).”
Do Better-Connected CEOs Innovate More?
Faleye, O., Kovacs, T., & Venkateswaran, A. (2011) · Journal of Financial and Quantitative Analysis · doi:10.1017/s0022109014000714 · Cited by 418 · see citing works
“We obtain forced CEO turnover data for 1997–2002 from Faleye (2007) and extend the data to 2006 following the same methodology as in that study.”
InfluentialSelf-citationDo takeover laws matter? Evidence from five decades of hostile takeovers
Cain, M. D., McKeon, S. B., & Solomon, S. D. (2017) · Journal of Financial Economics · doi:10.1016/j.jfineco.2017.04.003 · Cited by 395 · see citing works
Female directors and earnings management: Evidence from UK companies
Arun, T. G., Almahrog, Y. E., & Aribi, Z. A. (2015) · International Review of Financial Analysis · doi:10.1016/j.irfa.2015.03.002 · Cited by 381 · see citing works
“We identify high debt firms as those that rely more on debt financing, with larger boards and more independent directors (Coles et al. 2008; Faleye 2007).”
BackgroundResultThe market reaction to corporate governance regulation
Larcker, D. F., Ormazábal, G., & Taylor, D. J. (2011) · Journal of Financial Economics · doi:10.1016/j.jfineco.2011.03.002 · Cited by 354 · see citing works
“Bebchuk and Cohen (2005) and Faleye (2007) correlate staggered boards with Tobin’s Q and find a negative relation.”
InfluentialBoard Structure and Monitoring: New Evidence from CEO Turnovers
Guo, L., & Masulis, R. W. (2015) · Review of Financial Studies · doi:10.1093/rfs/hhv038 · Cited by 334 · see citing works
How much of the diversification discount can be explained by poor corporate governance?
Hoechle, D., Schmid, M., Walter, I., & Yermack, D. (2011) · Journal of Financial Economics · doi:10.1016/j.jfineco.2011.03.025 · Cited by 326 · see citing works
“This result suggests that the (weak) negative relation between firm value and a classified board documented in Table 3 is mainly associated with diversified firms (see Faleye, 2007).”
InfluentialCEO duality and firm performance: Evidence from an exogenous shock to the competitive environment
Yang, T., & Zhao, S. (2014) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2014.04.008 · Cited by 314 · see citing works
“Their results are in contrast to Faleye (2007b), who finds that dual leadership increases Tobin’s Q for complex firms but decreases it for non-complex firms.”
Investor Reactions to CEOs' Inside Debt Incentives
Wei, C., & Yermack, D. (2011) · Review of Financial Studies · doi:10.1093/rfs/hhr028 · Cited by 293 · see citing works
Endogeneity in CEO power: A survey and experiment
Li, Z. F. (2016) · Investment Analysts Journal · doi:10.1080/10293523.2016.1151985 · Cited by 261 · see citing works
“…equipment (Dittmar & Mahrt-Smith, 2007), independent directors, G Index, CEO total compensation, CEO payperformance sensitivity, return on assets (Faleye, 2007), firm age (Durnev & Kim, 2005; Adams, Almeida, & Ferreira, 2009), leverage, firm volatility, and Delaware company dummy, all of which…”
Firm Age and PerformancePreprint
Loderer, C. F., & Waelchli, U. (2009) · SSRN Electronic Journal · doi:10.2139/ssrn.1342248 · Cited by 269 · see citing works
“Moreover, it is distinct from such phenomena as sample selection, concave investment opportunity sets, financial frictions (Cooley and Quadrini, 2001; Clementi, 2002), declining investor uncertainty (Pástor and Veronesi, 2003), increasing diversification (Campa and Kedia, 2002; Villalonga, 2004), post-IPO regularities…”
BackgroundShareholder Voting and Corporate Governance
Yermack, D. (2010) · Annual Review of Financial Economics · doi:10.1146/annurev-financial-073009-104034 · Cited by 243 · see citing works
Labor-Friendly Corporate Practices: Is What is Good for Employees Good for Shareholders?
Faleye, O., & Trahan, E. A. (2011) · Journal of Business Ethics · doi:10.1007/s10551-010-0705-9 · Cited by 251 · see citing works
“We also follow the approach used in Faleye et al. (2006) and include performance variables around the event (naming to the Fortune list) as control variables.”
MethodInfluentialSelf-citationStaggered boards and long-term firm value, revisited
Cremers, M., Litov, L. P., & Sepe, S. M. (2017) · Journal of Financial Economics · doi:10.1016/j.jfineco.2017.08.003 · Cited by 210 · see citing works
CEO Replacement in Turnaround Situations: Executive (Mis)Fit and Its Performance Implications
Chen, G., & Hambrick, D. C. (2011) · Organization Science · doi:10.1287/orsc.1100.0629 · Cited by 219 · see citing works
“Under this view, grounded in agency theory, CEO replacement needs to happen more often than it does (Faleye 2007, Warner et al. 1988).”
BackgroundCan CSR Disclosure Protect Firm Reputation During Financial Restatements?
Zhang, L., Shan, Y. G., & Chang, M. (2020) · Journal of Business Ethics · doi:10.1007/s10551-020-04527-z · Cited by 210 · see citing works
Board classification and managerial entrenchment: Evidence from the market for corporate control
Bates, T. W., Becher, D. A., & Lemmon, M. L. (2007) · Journal of Financial Economics · doi:10.1016/j.jfineco.2007.03.007 · Cited by 210 · see citing works
“In keeping with the 8 notion that board classification facilitates managerial entrenchment, Faleye (2007) finds that classification reduces the probability of forced CEO turnover, is associated with a lower sensitivity of CEO turnover to firm performance, and is correlated with a lower sensitivity…”
InfluentialNot All Related Party Transactions (RPTs) Are the Same: Ex Ante Versus Ex Post RPTs
Ryngaert, M. D., & Thomas, S. (2012) · Journal of Accounting Research · doi:10.1111/j.1475-679x.2012.00437.x · Cited by 185 · see citing works
Staggered Boards and Earnings Management
Zhao, Y., & Chen, K. H. (2008) · The Accounting Review · doi:10.2308/accr.2008.83.5.1347 · Cited by 183 · see citing works
Founder Replacement and Startup Performance
Ewens, M., & Marx, M. (2016) · Review of Financial Studies · doi:10.1093/rfs/hhx130 · Cited by 180 · see citing works
Edmans, A. (2020) · Cambridge University Press eBooks · doi:10.1017/9781108860093 · Cited by 170 · see citing works
Ahmadi, A. A., Nakaa, N., & Bouri, A. (2017) · Research in International Business and Finance · doi:10.1016/j.ribaf.2017.07.083 · Cited by 169 · see citing works
Corporate governance, compensation consultants, and CEO pay levels
Armstrong, C. S., Ittner, C. D., & Larcker, D. F. (2012) · Review of Accounting Studies · doi:10.1007/s11142-012-9182-y · Cited by 168 · see citing works
Takeover protection and managerial myopia: Evidence from real earnings management
Zhao, Y., Chen, K., Zhang, Y., & Davis, M. L. (2011) · Journal of Accounting and Public Policy · doi:10.1016/j.jaccpubpol.2011.08.004 · Cited by 168 · see citing works
A Reexamination of Corporate Governance and Equity Prices
Johnson, S. A., Moorman, T. C., & Sorescu, S. M. (2009) · Review of Financial Studies · doi:10.1093/rfs/hhp018 · Cited by 161 · see citing works
What I Like About You: A Multilevel Study of Shareholder Discontent with Director Monitoring
Hillman, A. J., Shropshire, C., Certo, S. T., Dalton, D. R., & Dalton, C. M. (2010) · Organization Science · doi:10.1287/orsc.1100.0542 · Cited by 169 · see citing works
“Governance critics argue that classified boards entrench management and destroy shareholder value (Faleye 2007).”
Board diversity and firm performance: evidence from the U.K. SMEs
Shehata, N. F., Salhin, A., & El-Helaly, M. (2017) · Applied Economics · doi:10.1080/00036846.2017.1293796 · Cited by 164 · see citing works
“On the other hand, Murray (1989) and Kunze, Boehm, and Bruch (2011) reported a negative association between age diversity and firm performance, while Faleye (2007) reported a negative and significant association between average director age and Tobin’s Q.”
BackgroundBoard Committees in Corporate Governance: A Cross‐Disciplinary Review and Agenda for the Future
Kolev, K. D., Wangrow, D. B., Barker, V. L., & Schepker, D. J. (2019) · Journal of Management Studies · doi:10.1111/joms.12444 · Cited by 163 · see citing works
“Similarly, Faleye (2007) found nominating committee independence was associated with a 12 to 14 per cent lower market return.”
BackgroundDo LGBT-supportive Corporate Policies Enhance Firm Performance?
Pichler, S. M., Blazovich, J. L., Cook, K. A., Huston, J. M., & Strawser, W. R. (2015) · Human Resource Management · doi:10.1002/hrm.21831 · Cited by 158 · see citing works
“Prior research (Bebchuk & Cohen, 2005; Faleye, 2007; Faleye & Trahan, 2011; Morck, Shleifer, & Vishny, 1988; Yermack, 1996) demonstrates that these variables influence firm value, productivity, and profitability and thus represent necessary controls when examining the association between…”
Does one hat fit all? The case of corporate leadership structure
Faleye, O. (2007) · Journal of Management & Governance · doi:10.1007/s10997-007-9028-3 · Cited by 158 · see citing works
Self-citationBoard Networks and Corporate Innovation
Chang, C., & Wu, Q. (2020) · Management Science · doi:10.1287/mnsc.2020.3587 · Cited by 158 · see citing works
Yuan, G., Chen, J., & Liu, R. (2024) · International Review of Financial Analysis · doi:10.1016/j.irfa.2024.103495 · Cited by 159 · see citing works
Product Market Competition and Internal Governance: Evidence from the Sarbanes Oxley Act
Chhaochharia, V., Grinstein, Y., Grullon, G., & Michaely, R. (2012) · Management Science · doi:10.1287/mnsc.2015.2409 · Cited by 150 · see citing works
“This measure has also been identified in the literature as an indicator of managerial entrenchment (e.g., Faleye (2007) and Bebchuk and Cohen (2005)).”
BackgroundProduct Market Competition, Corporate Governance, and Firm Value: Evidence from the EU Area
Ammann, M. J., Oesch, D., & Schmid, M. M. (2013) · European Financial Management · doi:10.1111/j.1468-036x.2010.00605.x · Cited by 146 · see citing works
“Board characteristics (e.g., Yermack, 1996; Faleye, 2007), CEO ownership and power (e.”
How do staggered boards affect shareholder value? Evidence from a natural experiment
Cohen, A., & Wang, C. C. Y. (2013) · Journal of Financial Economics · doi:10.1016/j.jfineco.2013.08.005 · Cited by 146 · see citing works
Zorn, M. L., Shropshire, C., Martin, J. A., Combs, J. G., & Ketchen, D. J. (2017) · Strategic Management Journal · doi:10.1002/smj.2661 · Cited by 139 · see citing works
It’s who you know that counts: Board connectedness and CSR performance
Amin, A. S., Chourou, L., Kamal, S., Malik, M., & Zhao, Y. (2020) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2020.101662 · Cited by 140 · see citing works
“[Insert Table 6 about here] We implement two additional empirical estimation strategies (outlined in Faleye et al. (2014), Faleye (2007) and Cheng (2008)) to address concerns related to reverse causality.”
Mubeen, R., Han, D.-P., Abbas, J., & Hussain, I. (2020) · Sustainability · doi:10.3390/su12083480 · Cited by 124 · see citing works
“Additionally, in a weak and political organizational structure, the CEO might misuse his/her dual power and appoint a closely linked person as a director who is likely to perform according to the CEO’s direction [29].”
BackgroundRisky lending: Does bank corporate governance matter?
Faleye, O., & Krishnan, K. (2017) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2017.06.011 · Cited by 132 · see citing works
Self-citationWhat's in a vote? The short- and long-run impact of dual-class equity on IPO firm values
Smart, S., Thirumalai, R. S., & Zutter, C. J. (2007) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2007.07.002 · Cited by 130 · see citing works
Accounting restatements, governance and municipal debt financing
Baber, W. R., Gore, A. K., Rich, K. T., & Zhang, J. X. (2013) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2013.08.003 · Cited by 128 · see citing works
The Diversity of Corporate Board Committees and Financial PerformancePreprint
Carter, D. A., D’Souza, F. P., Simkins, B. J., & Simpson, W. G. (2008) · SSRN Electronic Journal · doi:10.2139/ssrn.1106698 · Cited by 126 · see citing works
“15 For example, see Yermack (1996), Prevost, Rao, and Hossain (2002), and Faleye (2007).”
BackgroundEarnings quality and corporate cash holdings
Sun, Q., Yung, K. K., & Rahman, H. (2011) · Accounting and Finance · doi:10.1111/j.1467-629x.2010.00394.x · Cited by 125 · see citing works
Entrenchment, governance, and the stock price reaction to sudden executive deaths
Salas, J. M. (2009) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2009.09.002 · Cited by 121 · see citing works
Mutual monitoring and corporate governance
Li, Z. F. (2014) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2013.12.008 · Cited by 118 · see citing works
Earnings Management and CSR Disclosure. Family vs. Non-Family Firms
Gavana, G., Gottardo, P., & Moisello, A. M. (2017) · Sustainability · doi:10.3390/su9122327 · Cited by 118 · see citing works
Understanding Uncontested Director Elections
Ertimur, Y., Ferri, F., & Oesch, D. (2017) · Management Science · doi:10.1287/mnsc.2017.2760 · Cited by 117 · see citing works
“If these directors or, more generally, firms with classified boards are less responsive (Faleye 2007), we may overstate the rate of responsiveness to individual-level recommendations.”
Are Interlocked Directors Effective Monitors?
Devos, E., Prevost, A. K., & Puthenpurackal, J. J. (2008) · Financial Management · doi:10.1111/j.1755-053x.2009.01059.x · Cited by 115 · see citing works
“classified boards (Faleye, 2007), and number of external appointments held by directors (Ferris, Jagannathan, and Pritchard, 2003).”
BackgroundWincent, J., Anokhin, S. A., & Boter, H. (2008) · R and D Management · doi:10.1111/j.1467-9310.2008.00539.x · Cited by 114 · see citing works
Undoing the powerful anti-takeover force of staggered boards
Guo, R.-J., Kruse, T. A., & Nohel, T. (2008) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2008.03.007 · Cited by 113 · see citing works
Pay Gap and Performance in China
Banker, R. D., Bu, D., & Mehta, M. N. (2016) · Abacus · doi:10.1111/abac.12082 · Cited by 111 · see citing works
The Effect of Corporate Governance on Auditor-Client Realignments
Cassell, C. A., Giroux, G. A., Myers, L. A., & Omer, T. C. (2012) · Auditing A Journal of Practice & Theory · doi:10.2308/ajpt-10240 · Cited by 110 · see citing works
Mubeen, R., Han, D., Abbas, J., Otero, S. Á., & Sial, M. S. (2021) · Frontiers in Psychology · doi:10.3389/fpsyg.2021.669715 · Cited by 110 · see citing works
“Moreover, CEOs can take advantage of their dual role in a weak structure and assign closer individuals executive positions through CEO directives (Faleye, 2007).”
BackgroundIs board compensation excessive?
Dah, M. A., & Frye, M. B. (2017) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2017.06.001 · Cited by 109 · see citing works
Mutual funds as monitors: Evidence from mutual fund voting
Morgan, A., Poulsen, A. B., Wolf, J. G., & Yang, T. (2011) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2011.04.002 · Cited by 108 · see citing works
Role of institutions in shaping corporate governance system: evidence from emerging economy
Arslan, M., & Alqatan, A. (2020) · Heliyon · doi:10.1016/j.heliyon.2020.e03520 · Cited by 107 · see citing works
“…have studied the general effects of voting restrictions on fi rm value and performance, often fi nding that fi rms perform worse in presence of voting restrictions (Gompers et al., 2003), staggered boards (Bebchuk and Cohen, 2005; Faleye, 2007) and dual class voting structures (Gompers et al., 2009).”
BackgroundBoard diversity and investment efficiency: evidence from China
Ullah, I., Zeb, A., Khan, M. A., & Xiao, W. Z. (2020) · Corporate Governance · doi:10.1108/cg-01-2020-0001 · Cited by 107 · see citing works
Corporate social responsibility and CEO compensation structure
Karim, K. E., Lee, E., & Suh, S. (2017) · Advances in Accounting · doi:10.1016/j.adiac.2017.11.002 · Cited by 106 · see citing works
“17 Following Faleye (2007), we use Tobin's Q as a proxy for firm value.”
Why Do Cities Hoard Cash? Determinants and Implications of Municipal Cash Holdings
Gore, A. K. (2009) · The Accounting Review · doi:10.2308/accr.2009.84.1.183 · Cited by 103 · see citing works
Why Do Firms Engage in Selective Hedging? Evidence from the Gold Mining Industry
Adam, T., Fernando, C. S., & Salas, J. M. (2015) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2015.05.006 · Cited by 103 · see citing works
“15 See, for example, Faleye (2007). 16 See, for example, Hermalin and Weisbach (1988), and Ryan and Wiggins (2004). 17 See, for example, Shleifer and Vishny (1986), Carleton, Nelson and Weisbach (1998), Gillan and Starks (2000), and Hartzell and Starks (2003).”
BackgroundInfluentialFos, V., Li, K., & Tsoutsoura, M. (2015) · Review of Financial Studies · doi:10.1093/rfs/hhx078 · Cited by 100 · see citing works
Local religious norms, corporate social responsibility, and firm value
Zolotoy, L., O’Sullivan, D., & Chen, Y. (2019) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2019.01.015 · Cited by 97 · see citing works
Does the director election system matter? Evidence from majority voting
Ertimur, Y., Ferri, F., & Oesch, D. (2014) · Review of Accounting Studies · doi:10.1007/s11142-014-9284-9 · Cited by 97 · see citing works
Hirschey, M. J., Skiba, H., & Wintoki, M. B. (2012) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2012.02.002 · Cited by 97 · see citing works
“R&D spending is often used as a proxy for information asymmetry between insiders and outside investors (e.g., Faleye, 2007; Wintoki, 2007), managerial discretion (e.g., Himmelberg, Hubbard and Palia, 1999), product differentiation or growth opportunities (e.g. Dittmar and Thakor, 2007; Elliot,…”
BackgroundCEO Entrepreneurial Orientation, Entrenchment, and Firm Value Creation
Keil, T., Maula, M. V. J., & Syrigos, E. (2017) · Entrepreneurship Theory and Practice · doi:10.1111/etp.12213 · Cited by 110 · see citing works
Managerial entrenchment and earnings management
Meo, F. D., Lara, J. M. G., & Surroca, J. A. (2017) · Journal of Accounting and Public Policy · doi:10.1016/j.jaccpubpol.2017.07.003 · Cited by 94 · see citing works
“Faleye (2007) controls for CEO age to determine the probability of managerial turnover, which is related to managerial entrenchment.”
BackgroundAnalyst following, staggered boards, and managerial entrenchment
Jiraporn, P., Chintrakarn, P., & Kim, Y. S. (2012) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2012.07.013 · Cited by 90 · see citing works
Capital Structure, Staggered Boards, and Firm Value
Jiraporn, P., & Liu, Y. (2008) · Financial Analysts Journal · doi:10.2469/faj.v64.n1.7 · Cited by 90 · see citing works
Internal and external discipline following securities class actions
Humphery‐Jenner, M. (2011) · Journal of Financial Intermediation · doi:10.1016/j.jfi.2011.09.001 · Cited by 90 · see citing works
CEO duality and firm performance in the U.S. restaurant industry: Moderating role of restaurant type
Guillet, B. D., Seo, K., Küçükusta, D., & Lee, S. (2012) · International Journal of Hospitality Management · doi:10.1016/j.ijhm.2012.10.004 · Cited by 88 · see citing works
Brown, J. A., Anderson, A. M., Salas, J. M., & Ward, A. J. (2017) · Organization Science · doi:10.1287/orsc.2017.1123 · Cited by 84 · see citing works
““staggered”) or not, as directors on classified boards have been seen to be controversial in the eyes shareholders (Faleye, 2007).”
BackgroundOn Lawsuits, Corporate Governance, and Directors' and Officers' Liability Insurance
Gillan, S., & Panasian, C. A. (2014) · Journal of Risk & Insurance · doi:10.1111/jori.12043 · Cited by 86 · see citing works
Carbon emissions, corporate governance, and staggered boards
Tanthanongsakkun, S., Treepongkaruna, S., & Jiraporn, P. (2022) · Business Strategy and the Environment · doi:10.1002/bse.3174 · Cited by 85 · see citing works
The impact of multinationality on firm value: A comparative analysis of machine learning techniques
Kuzey, C., Uyar, A., & Delen, D. (2013) · Decision Support Systems · doi:10.1016/j.dss.2013.11.001 · Cited by 82 · see citing works
Zhou, F., Fan, Y., An, Y., & Zhong, L. (2017) · Pacific-Basin Finance Journal · doi:10.1016/j.pacfin.2017.02.003 · Cited by 80 · see citing works
Takeover protection and stock price crash risk: Evidence from state antitakeover laws
Bhargava, R., Faircloth, S., & Zeng, H. (2017) · Journal of Business Research · doi:10.1016/j.jbusres.2016.08.021 · Cited by 74 · see citing works
Antitakeover Provisions and Shareholder Wealth: A Survey of the Literature
Straska, M., & Waller, H. (2013) · Journal of Financial and Quantitative Analysis · doi:10.1017/s0022109014000532 · Cited by 65 · see citing works
“9 While some report an insignificant market reaction or a negative one (Linn and McConnell (1983), Gillan and Starks (2000)), others report a positive market reaction (Faleye (2007), Guo, Kruse, and Nohel (2008), and Cunat, Gine, and Guadalupe (2012)). To address the fact that the short-term event studies generally re…”
InfluentialUpheaval in the boardroom: Outside director public resignations, motivations, and consequences
Dewally, M., & Peck, S. W. (2009) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2009.02.002 · Cited by 78 · see citing works
“Faleye (2007) using a sample from 1995 to 2002 documents 219 forced CEO turnovers among 1483 CEO replacements suggesting that CEO turnovers that are discipline related occur 14.77% of the time.”
BackgroundMethodInfluentialThe conditional nature of the value of corporate governance
Chi, J. D., & Lee, D. S. (2009) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2009.08.001 · Cited by 78 · see citing works
“, Fama and Jensen, 1983). However, the empirical evidence is inconclusive as to whether board structure is related to firm valuation. Hermalin and Weisbach (2003) argue that board structure is endogenously determined by other governance and operational characteristics, and therefore no relation between board structure…”
Chakravarty, S., & Rutherford, L. G. (2017) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2017.02.001 · Cited by 75 · see citing works
Field, L., & Lowry, M. (2022) · Journal of Financial Economics · doi:10.1016/j.jfineco.2022.06.004 · Cited by 40 · see citing works
“This 1 For evidence on classified boards, see Bebchuk, Coates, and Subramanian (2002), Bebchuk and Cohen (2005), Faleye (2007), and Guo, Kruse and Nohel (2008), among others.”
How Much of the Diversification Discount Can be Explained by Poor Corporate Governance?Preprint
Hoechle, D., Schmid, M., Walter, I., & Yermack, D. (2009) · SSRN Electronic Journal · doi:10.2139/ssrn.1341006 · Cited by 71 · see citing works
Optimal inside debt compensation and the value of equity and debt
Campbell, T. C., Galpin, N. E., & Johnson, S. A. (2015) · Journal of Financial Economics · doi:10.1016/j.jfineco.2015.09.003 · Cited by 70 · see citing works
Corporate Politics, Governance, and Value Before and After Citizens UnitedPreprint
Coates, J. (2012) · SSRN Electronic Journal · doi:10.2139/ssrn.1975421 · Cited by 70 · see citing works
Garba, T., & Abubakar, B. (2014) · RePEc: Research Papers in Economics · Cited by 68 · see citing works
CEO turnover in China: the role of market-based and accounting performance measures
Conyon, M. J., & He, L. (2012) · European Journal of Finance · doi:10.1080/1351847x.2012.676559 · Cited by 67 · see citing works
Staggered Boards, Managerial Entrenchment, and Dividend Policy
Jiraporn, P., & Chintrakarn, P. (2009) · Journal of Financial Services Research · doi:10.1007/s10693-009-0059-6 · Cited by 64 · see citing works
Mutual Funds as Monitors: Evidence From Mutual Fund VotingPreprint
Morgan, A., Poulsen, A. B., Wolf, J. G., & Yang, T. (2009) · SSRN Electronic Journal · doi:10.2139/ssrn.1431072 · Cited by 61 · see citing works
Do staggered boards harm shareholders?
Yakov Amihud, A., & Stoyanov, S. V. (2016) · Journal of Financial Economics · doi:10.1016/j.jfineco.2016.04.002 · Cited by 60 · see citing works
Classified Boards, the Cost of Debt, and Firm Performance
Chen, D. (2012) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2012.07.015 · Cited by 59 · see citing works
CEO Compensation Contagion: Evidence from an Exogenous Shock
Bereskin, F., & Cicero, D. C. (2012) · Journal of Financial Economics · doi:10.1016/j.jfineco.2012.09.005 · Cited by 60 · see citing works
Are outside directors with greater board tenure valuable? Evidence from the last credit crisis
Fernandes, N. G., & Fich, E. M. (2022) · Journal of Accounting and Public Policy · doi:10.1016/j.jaccpubpol.2022.107037 · Cited by 58 · see citing works
“Both theoretical work (e.g., Shleifer and Vishny, 1989) and empirical papers (e.g. Berger, Ofek, and Yermack, 1997, Bebchuk and Cohen 2005, and Faleye, 2007) argue that topmanagement entrenchment is detrimental to firm value.”
Background
- Authors
- Faleye, O.
- Affiliations
- Northeastern University (US)
- Corresponding author
- Faleye, Olubunmi
- ORCID
- Faleye, Olubunmi
- Venue
- Journal of Financial Economics
- Publisher
- Elsevier BV
- Published
- 2007-02
- Volume
- 83
- Issue
- 2
- Pages
- 501-529
- ISSN
- 0304-405X (ISSN-L)
- OpenAlex
- W2148416404
- Cited by
- 550
- References
- 38
- Citations by year
- 2026: 21 · 2025: 22 · 2024: 42 · 2023: 17 · 2022: 28 · 2021: 30 · 2020: 32 · 2019: 29 · 2018: 23 · 2017: 40 · 2016: 22 · 2015: 23 · 2014: 31 · 2013: 23 · 2012: 31
- FWCI
- 73.66
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Financial Economics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Accounting › Corporate Finance and Governance
- Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Governance and Law
- Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Governance and Financial Management
- Keywords
- classified boards, firm value, managerial entrenchment, board accountability, CEO turnover, executive compensation, proxy contests, shareholder resolutions, market discipline, corporate governance
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