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An Empirical Investigation of the Determinants of Outside Director Compensation
Author(s) -
Cordeiro James,
Veliyath Rajaram,
Eramus Edward
Publication year - 2000
Publication title -
corporate governance: an international review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.866
H-Index - 85
eISSN - 1467-8683
pISSN - 0964-8410
DOI - 10.1111/1467-8683.00204
Subject(s) - compensation (psychology) , business , set (abstract data type) , accounting , variables , executive compensation , econometrics , economics , psychology , computer science , statistics , mathematics , social psychology , programming language
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.