Bang Dang Nguyen
Title of research: Director Incentives in the Labor Market, Corporate Governance, and Firm Performance
This project investigates the impact of director reputational incentives in the labor market on director monitoring, corporate governance, and firm performance. Using a hand-collected sample of retired CEO directors, we first study the impact of their CEO retirement announcements on the value of the firms in which they continue to hold outside directorships. We then analyse whether post-retirement diminishing incentives in the director labor market wield real impact on the quality and intensity of retired CEO director monitoring and on governance. Finally, we discuss how our methodology addresses endogeneity of director incentives by effectively controlling for director- and firm-fixed effects.
Director Incentives in the Labor Market, Corporate Governance, and Firm Performance