Assessing Managerial Ability: Implications for Corporate Governance / Benjamin Hermalin, Michael Weisbach.

Format:

Book

Author/Creator:

Hermalin, Benjamin.

Contributor:

National Bureau of Economic Research.

Weisbach, Michael.

Series:

Working Paper Series (National Bureau of Economic Research) no. w23121.

NBER working paper series no. w23121

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Assessing Managerial Ability

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2017.

Summary:

A manager's current and potential future employers are continually assessing her or his ability. Such assessment is a crucial component of corporate governance and this chapter provides an overview of the research on that aspect of governance. In particular, we review how assessment generates incentives (both good and bad), generates risks that must be faced by both managers and firms, and affects the contractual relationships between those parties in important ways. Assessment (or learning) proves a key perspective from which to study, evaluate, and possibly even regulate corporate governance. Moreover, because learning is a behavior notoriously subject to systematic biases, this perspective is a natural avenue through which to introduce behavioral and psychological insights into the study of corporate governance.

Notes:

Print version record

February 2017.