In this article, we analyze the impact of managerial compensation structure in publicly-traded banks on their risk taking behavior described by the loans extended by them, and the changes in risk taking through the changing regulatory environment for these banks. We build a simulation model to study the impact of the interaction between regulatory changes and competitiveness in the sector on ma...

The aim of this paper is to discuss the effect of corporate governance mechanisms on controlling CEOs’ emotions and some behavioral biases. Departing from a sample of 40 public traded Tunisian firms, we test the impact of the board of directors on managing CEO’s irrationalities. Our results highlight strong evidence on the role of the board characteristics, especially the board independence, a ...

We propose a model in which firms compete to attract better managers by using corporate governance as part of an optimal executive compensation scheme. Higher governance decreases the cost of taking disciplinary actions against managers, but when managerial talent is scarce, competition among firms to attract better managers implies that firms under-invest in governance. The reason is that mana...

We simultaneously analyze two mechanisms of the managerial labor market (CEO turnover and remuneration schemes) in two different regulatory regimes, namely before and after the sweeping governance reforms adopted in the UK in the 1990s. We employ sample selection models to examine firms in a pre-Cadbury Code period (1988-1993) and a post-Combined Code period (1998-2004). CEOs’ compensation and ...

While the traditional agency model assumes managerial risk aversion and underinvestment in high tech opportunities, the behavioural agency model allows for risk seeking by managers leading possibly to over-risky investment. Corporate governance mechanisms can correct both underand overrisky investment thereby ensuring value enhancing high tech acquisitions. Our study builds an empirical optimal...

In the field of management, the study of governance has primarily dealt with decision-making by boards of directors, chief executives, and senior managers. The corporate governance literature has generated important insights regarding incentive alignment, risk taking, and coordination challenges. Emerging trends, highlighted in this issue, raise new questions regarding managerial roles, organiz...

in recent years, the implementation of integrated information systems in the iranian public sector has significantly increased. this is of more importance in holdings and multi-branch organizations. considering the fact that the cost, time-span and quality of implementation of these systems, has a dramatic impact on public sector effectiveness, therefore, identification and classification of fa...