Contribution to Book
Do Outside Blockholders Influence Corporate Governance Practices?
Corporate Governance
Document Type
Contribution to Book
Language
eng
Format of Original
21 p.
Publication Date
1-1-2004
Publisher
Emerald Group Publishing Ltd.
Disciplines
Abstract
This study investigates whether block acquisitions lead to changes in board and CEO compensation characteristics and finds that block purchasers do not play a significant role in improving the firm’s governance practices. However, the majority of professional investors have sold their block within a year, suggesting that they do not own their stock long enough to alter governance policies nor to benefit from such changes. For the smaller number of firms where a new blockholder maintains their investment for more than a year, the use of equity based CEO compensation increases while the use of cash based compensation decreases.
Citation Information
Sarah Peck. "Do Outside Blockholders Influence Corporate Governance Practices?" Corporate Governance (2004) ISSN: 9780762311330 Available at: http://works.bepress.com/sarah_peck/15/
Accepted version. Corporate Governance, (2004): 81-101. DOI. © 2004 Emerald. Used with permission.