Corporate governance
Top management process (top management, managerial cognition, etc.)
READINGS
Core, Holthausen, Larcker 1999 “Corporate governance, chief executive officer compensation, and firm performance”
Amihud & Lev 1981 “Risk reduction as a managerial motive for conglomerate mergers”
Yoo & Jung 2015 “Corporate governance change and performance…”
Hammond, Keeney, & Raiffa 1998 “The hidden traps in decision making”
Hayward & Hambrick 1997 “Explaining the Premiums Paid for Large Acquisitions: Evidence of CEO Hubris”
Audia, Locke, & Smith 2000 “The Paradox of Success: An Archival and a Laboratory Study of Strategic Persistence Following Radical Environmental Change”
FIRMS: AIG & ALL STATE
1) Pick two firms and compare their corporate governance using ideas from the readings 1-3. Which firm is better governed? What makes you believe that? Which governance mechanisms are working properly and which ones are not? Please suggest ways to fix the problems.
2) Compare these two firms’ 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?