The Internal Governance of Firms /
Acharya, Viral V.
The Internal Governance of Firms / Viral V. Acharya, Stewart C. Myers, Raghuram Rajan. - Cambridge, Mass. National Bureau of Economic Research 2009. - 1 online resource: illustrations (black and white); - NBER working paper series no. w15568 . - Working Paper Series (National Bureau of Economic Research) no. w15568. .
December 2009.
We develop a model of internal governance where the self-serving actions of top management are limited by the potential reaction of subordinates. Internal governance can mitigate agency problems and ensure that firms have substantial value, even with little or no external governance by investors. External governance, even if crude and uninformed, can complement internal governance and improve efficiency. This leads to a theory of investment and dividend policy, where dividends are paid by self-interested CEOs to maintain a balance between internal and external control.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
The Internal Governance of Firms / Viral V. Acharya, Stewart C. Myers, Raghuram Rajan. - Cambridge, Mass. National Bureau of Economic Research 2009. - 1 online resource: illustrations (black and white); - NBER working paper series no. w15568 . - Working Paper Series (National Bureau of Economic Research) no. w15568. .
December 2009.
We develop a model of internal governance where the self-serving actions of top management are limited by the potential reaction of subordinates. Internal governance can mitigate agency problems and ensure that firms have substantial value, even with little or no external governance by investors. External governance, even if crude and uninformed, can complement internal governance and improve efficiency. This leads to a theory of investment and dividend policy, where dividends are paid by self-interested CEOs to maintain a balance between internal and external control.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.