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Individuals and corporate decisions.

Record Type:	Language materials, manuscript : Monograph/item
Title/Author:	Individuals and corporate decisions./
Author:	Yim, Soojin.
Description:	1 online resource (101 pages)
Notes:	Source: Dissertations Abstracts International, Volume: 72-04, Section: A.
Contained By:	Dissertations Abstracts International72-04A.
Subject:	Finance. -
Online resource:	click for full text (PQDT)
ISBN:	9781124091846

Individuals and corporate decisions.
Yim, Soojin.

Individuals and corporate decisions. - 1 online resource (101 pages)

Source: Dissertations Abstracts International, Volume: 72-04, Section: A.

Thesis (Ph.D.)--Harvard University, 2010.

Includes bibliographical references

This dissertation consists of three essays on the role of individuals in corporate decision-making. The first essay examines how board networks affect change-of-control transactions by investigating whether directors' deal exposure acquired through board service at different companies affect their current firms' likelihood of being targeted in a private equity-backed, take-private transaction. Companies which have directors with private equity deal exposure gained from interlocking directorships are approximately 42% more likely to receive private equity offers. The magnitude of this effect varies with the influence of directors on their current boards and the quality of these directors' previous take-private experience. The essay shows that board members and their social networks influence which companies become targets in change-of-control transactions. The second essay documents that firm acquisition propensity is decreasing in the age of the CEO: a firm with a CEO who is 20 years older is 30% less likely to announce an acquisition. This finding is attributed to age-related variation in agency problems arising from the large, permanent compensation gains that accompany acquisitions, which create strong financial incentives for CEOs to pursue acquisitions earlier in their career. Consistent with an agency interpretation, the effect of age on acquisition propensity is attenuated in firms with strong governance. This essay highlights the role that CEO characteristics play in shaping corporate policies and the role that governance plays in restraining the influence of CEO incentives. The third essay examines how uncertain CEO-firm match quality of prospective hires affects the CEO selection decision of firms in the context of internal versus external succession. Greater certainty in the match quality of the external supply of candidates encourages outsider succession, and investment activities of outsider CEOs subsequent to hire reflect whether replacement was driven by external supply quality or internal poor performance. In addition, uncertain match quality results in outsider CEOs who are higher quality than insiders on average, but exposes new external hires to the risk of low realized match quality. This essay shows that match uncertainty affects replacement decisions and has consequences for CEO turnover, compensation, and firm investment.

Electronic reproduction.
Ann Arbor, Mich. :
ProQuest,
2024

Mode of access: World Wide Web

ISBN: 9781124091846Subjects--Topical Terms:

559073
Finance.
Subjects--Index Terms:

Board of directorsIndex Terms--Genre/Form:

554714
Electronic books.

Individuals and corporate decisions.
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