An Empirical Investigation of the Determinants of Outside Director Compensation
Posted: 24 Oct 2000
Using data on 200 large U.S. corporations in 1996, this study develops and tests a model in which the Compensation of Outside Directors is significantly related to Director Effort, External Monitoring, Internal Referents and Firm Performance, after controlling for Firm Size and Inside Ownership. There is some support for each set of hypotheses relating to the different independent variables in the model.
JEL Classification: G34, J44
Suggested Citation: Suggested Citation