TOPIC: Corporate governance (top management, managerial cognition, etc.)
Companies: AIG & ALL STATES
READINGS:
1) Core, Holthausen, Larcker 1999 “Corporate governance, chief executive officer compensation, and firm performance”
2) Amihud & Lev 1981 “Risk reduction as a managerial motive for conglomerate mergers”
3) Yoo & Jung 2015 “Corporate governance change and performance…”
4) Hammond, Keeney, & Raiffa 1998 “The hidden traps in decision making”
5) Hayward & Hambrick 1997 “Explaining the Premiums Paid for Large Acquisitions: Evidence of CEO Hubris”
6) Audia, Locke, & Smith 2000 “The Paradox of Success: An Archival and a Laboratory Study of Strategic Persistence Following Radical Environmental Change”
Question
Compare the two companie’s top management teams. What problems do you see using ideas from readings 4-6? If you were members of the boards of directors, what changes would you make in the top management team of this company?