410
Views
44
CrossRef citations to date
0
Altmetric
Original Articles

An analysis of the association between firms' investment opportunities, board composition and firm performance

Pages 17-38 | Received 01 May 2001, Accepted 01 Dec 2001, Published online: 29 May 2012

References

  • Agrawal , A. and Knoeber , C. R. 1996 . “Firm performance and mechanisms to control agency problems between managers and shareholders” . Journal of Financial and Quantitative Analysis , 31 ( 3 ) : 377 – 397 .
  • Anderson , D. , Francis , J. R. and Stokes , D. J. 1993 . “Auditing directorship and the demand for monitoring” . Journal of Accounting & Public Policy , 12 : 353 – 375 .
  • Antle , R. and Smith , A. 1986 . “An empirical investigation of the relative performance evaluation of corporate executives” . Journal of Accounting Research , 24 : 1 – 24 .
  • Baber , W. R. , Janakiraman , S. N. and Kang , S. H. 1996 . “Investment opportunities and the structure of executive compensation” . Journal of Accounting and Economics , 21 ( 4 ) : 297 – 318 .
  • Baliga , B. R. , Moyer , R. C. and Rao , R. S. 1996 . “CEO duality and firm performance: What's the fuss?”. . Strategic Management Journal , 17 ( 1 ) : 41 – 53 .
  • Baysinger , B. , Kosnik , R. D. and Turk , T. A. 1991 . “Effects of board and ownership structure on corporate R & D strategy” . Academy of Management Journal , 34 : 205 – 214 .
  • Bathala , C. T. and Rao , R. P. 1995 . “The determinants of board composition: an agency theory perspective” . Managerial and Decision Economics , 16 : 59 – 69 .
  • Bloom , M. and Milkovich , G. T. 1998 . “Relationships among risk, incentive pay, and organizational performance” . Academy of Management , 41 ( 3 ) : 283 – 296 .
  • Bradbury , M. 1992 . “Voluntary disclosure of financial segment data: New Zealand evidence” . Accounting and Finance , 32 ( 1 ) : 15 – 27 .
  • Bushman , R. M. , Indjejikian , R. J. and Smith , A. 1996 . “CEO compensation: the role of individual performance evaluation” . Journal of Accounting and Economics , 21 : 161 – 193 .
  • Carr , L. L. 1997 . “Strategic determinants of executive compensation in small publicly traded firms” . Journal of Small Business Management , 35 ( 3 ) : 1 – 12 .
  • Collins , M. C. , Blackwell , D. W. and Sinkey , J. F. Jr . 1995 . “The relationship between corporate compensation policies and investment opportunities: empirical evidence for large bank holding companies” . Financial Management , 24 ( 3 ) : 40 – 53 .
  • Conyon , M. J. and Peck , S. I. 1998 . “Board control, remuneration committees, and top management compensation” . Academy of Management Journal , 41 ( 2 ) : 146 – 157 .
  • Core , J. E. , Holthausen , R. W. and Larker , D. F. 1999 . “Corporate governance, chief executive officer compensation, and firm performance” . Journal of Financial Economics , 51 : 371 – 406 .
  • Dalton , D. R. , Dailey , C. M. , Ellstrand , A. E. and Johnson , J. L. 1998 . “Meta-analytic reviews of board composition, leadership structure, and financial performance” . Strategic Management Journal , 19 ( 3 ) : 269 – 290 .
  • Evans , J. and Weir , C. 1995 . “Decision processes, monitoring, incentives and large firm performance in the UK” . Management Decision , 33 ( 6 ) : 32 – 37 .
  • Gaver , J. and Gaver , K. 1993 . “Additional evidence on the association between the investment opportunity set and corporate financing, dividend, and compensation policies” . Journal of Accounting and Economics , 16 : 125 – 160 .
  • Gomez-Mejia , L. R. and Wiseman , R. M. 1997 . “Reframing executive compensation: An assessment and outlook” . Journal of Management , 23 ( 3 ) : 291 – 374 .
  • Govindarajan , V. 1988 . “A contingency approach to strategy implementation at the business-unit level: Integrating administrative mechanisms with strategy” . Academy of Management Journal , 32 ( 4 ) : 828 – 853 .
  • Gui , F. A. 1999a . “Government share ownership, investment opportunity set and corporate policy choices in China” . Pacific-Basin Finance Journal , 7 : 157 – 172 .
  • Gul , F. A. 1999b . “Growth opportunities, capital structure and dividend policies in Japan” . Journal of Corporate Finances , : 141 – 168 .
  • Hossain , M. , Cahan , S. F. and Adams , M. B. 2000 . “The investment opportunity set and the voluntary use of outside directors: New Zealand evidence” . Accounting and Business Research , 30 ( 4 ) : 263 – 273 .
  • Hutchinson , M. R. 2000 . “A contracting-agency analysis of the association between firm risk, investment opportunity set, corporate governance and firm performance”, unpublished doctoral thesis Deakin University .
  • Jensen , M. C. and Meckling , W. H. 1976 . “Theory of the firm: managerial behaviour, agency costs and ownership structure” . Journal of Financial Economics , 3 ( 4 ) : 305 – 360 .
  • Kowtha , N. R. 1997 . “Skills, incentives, and control: an integration of agency and transaction cost approaches” . Croup and Organisation Management , 22 ( 1 ) : 53 – 86 .
  • Kren , L. and Kerr , J. K. 1997 . “The effect of outside directors and board shareholdings on the relation between chief executive compensation and firm performance” . Accounting and Business Research , 27 ( 4 ) : 297 – 309 .
  • Mace , M. L. 1971 . Directors, Myth and Reality Boston : Harvard Business School Press). .
  • Morck , R. , Shleifer , A. and Vishny , R. W. 1988 . “Management ownership and market valuation: an empirical analysis” . Journal of Financial Economics 20 , : 293 – 315 .
  • Myers , S. 1977 . “Determinants of corporate borrowing” . Journal of Financial Economics , 5 : 141 – 175 .
  • Shleifer , A. and Vishny , R. W. 1997 . “A survey of corporate governance” . Journal of Finance , 2 : 737 – 783 .
  • Skinner , D. 1993 . “The investment opportunity set and accounting procedure choice” . Journal of Accounting and Economics , 16 : 407 – 445 .
  • Smith , C. and Watts , R. 1992 . “The investment opportunity set and corporate financing, dividend and compensation policies” . Journal of Financial Economics , 32 : 509 – 522 .
  • Tosi , H. L. , Katz , J. P. and Gomez , M. L. 1997 . “Disaggregating the agency contract: the effects of monitoring, incentive alignment, and term in office on agent decision making” . Academy of Management Journal , 40 ( 3 ) : 584 – 602 .
  • Tosi , H. L. Jr. and Gomez-Mejia , L. R. 1994 . “CEO compensation monitoring and firm performance” . Academy-of-Management-Journal , 37 ( 4 ) : 1002 – 1016 .
  • Tosi , H. L. and Gomez-Mejia , M. L. 1989 . “The decoupling of CEO pay and performance: an agency theory perspective”. . Administrative Science Quarterly , 34 : 169 – 190 .
  • Weir , C. 1997 . “Corporate governance, performance, and take-overs: an empirical analysis of UK mergers” . Applied Economics , 29 : 1465 – 1475 .
  • Weisbach , M. 1988 . “Outside directors and CEO turnover” . Journal of Financial Economics (January/March) , : 431 – 460 .

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.