Publications

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11 Jul 2012
Research & Ideas

The Future of Boards

director to serve as a liaison between the other board members and the CEO. As clear-cut as these subjects may seem, the underlying question, as Lorsch sees it, is far more complex: What is the broader... View Details

Keywords: by Julia Hanna

January 2015
Article

Are Incentives Without Expertise Sufficient? Evidence from Fortune 500 Firms

By: Emilie R. Feldman and Cynthia A. Montgomery

Agency theory predicts that incentives will align agents' interests with those of principals. However, the resource-based view suggests that to be effective, the incentive to deliver must be paired with the ability to deliver. Using Fortune 500 boards as an... View Details

Keywords: Board Of Directors; Corporate Governance; Incentives; Expertise; Motivation and Incentives; Governing and Advisory Boards; Experience and Expertise; Agency Theory

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2021
Working Paper

rTSR: Properties, Determinants, and Consequences of Benchmark Choice

By: Paul Ma, Jee-Eun Shin and Charles C.Y. Wang

We develop a measurement-error framework for assessing the quality of relative-performance metrics designed to filter out the systematic component of performance and analyze relative total shareholder return (rTSR)—the predominant metric market participants use to... View Details

Keywords: Relative TSR; Relative Performance Evaluation; Systematic Risk; Board Of Directors; Compensation Consultants; Style Effects; Executive Compensation; Performance Evaluation; Corporate Governance

SSRN

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June 2011
Case

Trouble in Islandia; Computer Associates 2001 - 2004

By: Jay W. Lorsch and Melissa Barton

The Board of Directors of Computer Associates deals with pressure from the U.S. Department of Justice as its members try to gain better insight into the accounting practices of the company's top management team. View Details

Keywords: Problems and Challenges; Corporate Governance; Management Teams; Ethics; Practice; Florida; United States

02 Sep 2010
What Do You Think?

How Transparent Should Boards Be?

Gogula put it, "While protecting the short term interests of shareholders and avoiding a depression of stock prices may be a tempting recourse for a Board member to take,... View Details

Keywords: by Jim Heskett

November 1989 (Revised December 1996)
Supplement

Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance

By: Michael C. Jensen

Describes the resolution of the default situation. Further examines the internal control mechanisms and distinct role of the board of directors of a typical LBO association. View Details

Keywords: Corporate Governance; Leveraged Buyouts; Rail Industry

24 Nov 2003
Research & Ideas

Boards and Corporate Governance: A Balanced Scorecard Approach

directors. Independent directors are now expected to play a greater role, audit committees are required to take on greater responsibilities, and senior managers and boards are being held more accountable for... View Details

Keywords: Re: Robert S. Kaplan & Krishna G. Palepu

04 Jun 2018
What Do You Think?

Are There Conditions Under Which Directors Should Consider Hiring a CEO Fired Elsewhere for Inappropriate Behavior?

David Wittenberg wrote that a board that would automatically disqualify such fired managers might be playing it too safe. “When a board of View Details

Keywords: by James Heskett

September 2006 (Revised February 2007)
Case

Timing of Option Grants at UnitedHealth Group (A)

Faced with press allegations that executives' stock options might have been backdated, the Board of UnitedHealth Group needs to determine whether its accounting for the options was proper, and if not, what the restatement amount should be and what... View Details

Keywords: Governing and Advisory Boards; Ethics; Stock Options; Accounting; Crisis Management; Corporate Governance; Insurance Industry; Health Industry; United States

Article

The Influence of Ownership on Accounting Information Expenditures

This paper analyzes the association between ownership, top management incentives, and expenditures on accounting information. We argue that organizations with privately appointed boards of directors such as for-profit and non-governmental nonprofit organizations use... View Details

Keywords: Governance; Motivation and Incentives; Accounting; Health Care and Treatment; Ownership; Health Industry

10 Jan 2007
HBS Case

The Challenge of Managing National Security

Associate Professor Jan Rivkin joined the HBS faculty in 1997 as a member of the Strategy Unit. His special area of interest is examining the interactions that occur between... View Details

Keywords: by Garry Emmons; Service

16 Apr 2008
Lessons from the Classroom

Chris Christensen: Legend of the Classroom

observes Willis Emmons (HBS MBA '85, PhDBE '89), director of the C. Roland Christensen Center for Teaching and Learning at HBS. "We welcomed 38 new faculty to the School this year and hope to have a... View Details

Keywords: by Deborah Blagg; Education

18 Aug 2011
Lessons from the Classroom

Business Plan Contest: 15 Years of Building Better Entrepreneurs

the power to impact the health of millions rallied the team, recalls Jon Puz (MBA '08), a director of account management at the health-care consultancy Carol Corp. (Puz... View Details

Keywords: by Julia Hanna; Education

Research Summary

The Talent at the Table: Business Expertise and Share Ownership in Fortune 500 Boardrooms

This paper examines the relationship between corporate value and "vestige" directors, defined as directors who own sizeable shareholdings but lack salient business experience relative to their peers on Fortune 500 boards. These people come to serve on... View Details

September 2024
Article

Activist Directors: Determinants and Consequences

By: Ian D. Gow, Sa-Pyung Sean Shin and Suraj Srinivasan

This paper examines determinants and consequences of hedge fund activism, focusing on activist directors, i.e., directors appointed in response to activist demands. Using a sample of 3,259 activism events from 2004 to 2016, we identify 1,623 activist directors.... View Details

Keywords: Governing and Advisory Boards; Investment Activism; Business and Shareholder Relations

October 1997 (Revised November 1997)
Case

NAACP, The

By: James E. Austin, Paul Barese, Stephanie L. Woerner and Elaine V. Backman

In February 1995, the National Association for the Advancement of Colored People (NAACP), the largest civil rights organization in the United States, was in the midst of a crisis. The executive director had been fired due to financial improprieties amid charges of... View Details

Keywords: Crime and Corruption; Capital; Governance Controls; Resignation and Termination; Selection and Staffing; Rights; Leadership; Management; United States

November 1999 (Revised November 2000)
Case

Cortlandt Town Center

By: William J. Poorvu and Arthur I Segel

CBL & Associates is trying to decide whether to go ahead with the development of a 790,000 square-foot power center with retailers such as Home Depot and Barnes & Noble. The costs are such that the developer needs to renegotiate its land acquisition price. Then the... View Details

Keywords: Buildings and Facilities; Decision Making; Entrepreneurship; Cost; Negotiation; Projects; Strategy; Construction Industry; Retail Industry