search query: @author Kim, S. / total: 25
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| Author: | Hwang, B-H. Kim, S. |
| Title: | It pays to have friends |
| Journal: | Journal of Financial Economics
2009 : JUL, VOL 93:1, p. 138-158 |
| Index terms: | board of directors bias compensation |
| Language: | eng |
| Abstract: | At the moment, the independence of a director means that he/she has no financial or family ties to the company. This article aims to study whether the social ties of a board director affect his/her independence. It is found that according to the current classification, 86% of boards are independent. However, when taking the social ties into account, only 62% of boards can be considered independent. These companies also tend to have remarkably lower levels of compensation, stronger pay-performance sensitivity ans stronger turnover-performance sensitivity than boards that are not socially independent. |
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