DEUTSCH, Yuval
Decision making in acquisitions : the effect of outside director's compensation on acquisition patterns - London, UK : Sage Publications, February 2007
This article examines how the compensation paid for outside directors affects firms acquisition behavior. Using panel data of Standard & Poors 1500 firms between 1996 and 2002, the authors find that stock and stock option pay for outside directors are related in an inverted U-shaped manner to a firms acquisition rate and that for stock options, this relationship is moderated by board composition. Their findings suggest a dual agency model of corporate governance, according to which not only executives incentives but also outside directors incentives should be aligned with the shareholder value creation
Decision making in acquisitions : the effect of outside director's compensation on acquisition patterns - London, UK : Sage Publications, February 2007
This article examines how the compensation paid for outside directors affects firms acquisition behavior. Using panel data of Standard & Poors 1500 firms between 1996 and 2002, the authors find that stock and stock option pay for outside directors are related in an inverted U-shaped manner to a firms acquisition rate and that for stock options, this relationship is moderated by board composition. Their findings suggest a dual agency model of corporate governance, according to which not only executives incentives but also outside directors incentives should be aligned with the shareholder value creation
