This paper investigates the corporate governance and performance implications of chief executive ownership in a sample of Australian listed companies. It is found that companies in which the chief executive has an ownership stake of greater than 5 percent make less use of the corporate governance mechanisms as recommended by the stock exchanges. However, there is no significant performance difference between firms with different levels of executive control. The results support the proposition that there may be an offset between the costs of managerial entrenchment and the incentive alignment benefits of executive shareholdings.
History
Publication title
Papers Being Presented at the 2010 AFAANZ Conference
Volume
2010
Editors
AFAANZ
Pagination
1-26
Department/School
TSBE
Publisher
AFAANZ
Place of publication
Conference website
Event title
AFAANZ
Event Venue
Darwin
Date of Event (Start Date)
2010-07-03
Date of Event (End Date)
2010-07-05
Rights statement
Copyright 2010 the Authors
Repository Status
Restricted
Socio-economic Objectives
Expanding knowledge in commerce, management, tourism and services