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  • 2012 Fall: Volume 10, Issue 2
  • The Connection between CEO Characteristics and Board Meetings: An Empirical Analysis

    • Aidong Hu

    Title:

    The Connection between CEO Characteristics and Board Meetings: An Empirical Analysis

    Author(s):

    The Connection between CEO Characteristics and Board Meetings: An Empirical Analysis

    Publication Date:

    2012

    Journal Title:

    The Journal of Finance Issues

    Volume Number:

    10

    Issue Number:

    2

    Abstract:

    I examine how firm characteristics and CEO characteristics affect the frequency of annual board meetings. The data sample covers the post Sarbanes-Oxley Act era between 2002 and 2006. Using a Tobit qualitative response model with a data set of 1,273 corporations from ExecuComp, I find evidence that seasoned CEOs with high level of stock ownership and cash compensation are less likely to hold frequent board meetings as predicted by the hypothesis of corporate governance under managerial entrenchment. The propensity to hold board meetings is significantly and positively associated with the size of the firm and is significantly and negatively associated with Return on Equity (ROE). However, the existence of executive stock options and CEO long-term incentive plan may increase the frequency of board meetings. My results extend and refine the growing literature on the relation of executive compensation, board activities and corporate governance.

    First Page:

    1

    Last Page:

    14

    Total Pages:

    13