Getting them to think outside the circle: Corporate governance, CEOs' external advice networks, and firm performance

• 成果类型: Article
• 署名作者: McDonald, Michael L.; Khanna, Poonam; Westphal, James D.
• 署名单位: State University System of Florida; University of Central Florida; Arizona State University; Arizona State University-Tempe; University of Michigan System; University of Michigan
• 刊物名称: ACADEMY OF MANAGEMENT JOURNAL
• ISSN/ISSBN: 0001-4273
• 发表日期: 2008
• 页码: 453-475
• 关键词: Agency theory; managerial incentives; financial performance; social networks; OWNERSHIP; DIRECTORS; COMPENSATION; involvement; boards; pay

摘要

This article contributes to the social networks literature by examining how corporate governance factors influence CEOs' external advice-seeking behaviors. We incorporate insights from social networks research into an agency theory perspective to predict, and demonstrate empirically, that governance factors recommended by agency theory increase CEOs' tendencies to seek out advice contacts who are likely to offer perspectives on strategic issues that differ from their own; these advice-seeking behaviors ultimately enhance firm performance. Accordingly, this article also contributes to the corporate governance literature by describing how and why CEOs' advice networks mediate the effects of governance factors on firm performance.