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Masanori Orihara
''Board independence and a shareholder's commitment''
( 2017, Vol. 37 No.2 )
Our model shows that it is optimal for shareholders to choose boards of directors whose preferences do not align with those of the shareholders. Such a board composition works as the shareholders' commitment to providing an incentive for risk-averse CEOs.
Keywords: board of directors, commitment, contract enforceability
JEL: G3 - Corporate Finance and Governance: General
Manuscript Received : Sep 27 2016 Manuscript Accepted : Apr 22 2017

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