Board social capital and excess CEO returns

Excess CEO returns refer to CEO financial returns in excess of shareholder returns. How do boards rein in excess CEO returns? Introducing a social capital view of board monitoring, we suggest that boards face two competing normative pressures - corporate elite norms and monitoring norms. How boards...

Full description

Bibliographic Details
Main Authors: Sauerwald, S., Lin, Z., Peng, Mike
Format: Journal Article
Published: John Wiley & Sons 2016
Online Access:http://hdl.handle.net/20.500.11937/50119
_version_ 1848758398633377792
author Sauerwald, S.
Lin, Z.
Peng, Mike
author_facet Sauerwald, S.
Lin, Z.
Peng, Mike
author_sort Sauerwald, S.
building Curtin Institutional Repository
collection Online Access
description Excess CEO returns refer to CEO financial returns in excess of shareholder returns. How do boards rein in excess CEO returns? Introducing a social capital view of board monitoring, we suggest that boards face two competing normative pressures - corporate elite norms and monitoring norms. How boards conform to such normative pressures for controlling excess CEO returns is affected by their external and internal social capital. Further, we substantiate our arguments by showing that powerful CEOs and institutional investors may facilitate or constrain the normative pressures existing in the social network and alter the effects of board social capital on excess CEO returns. Data from a sample of U.S. corporations listed on the Standard and Poor's 1,500 index from 1999 to 2010 largely support our framework.
first_indexed 2025-11-14T09:43:21Z
format Journal Article
id curtin-20.500.11937-50119
institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T09:43:21Z
publishDate 2016
publisher John Wiley & Sons
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-501192017-09-13T15:37:02Z Board social capital and excess CEO returns Sauerwald, S. Lin, Z. Peng, Mike Excess CEO returns refer to CEO financial returns in excess of shareholder returns. How do boards rein in excess CEO returns? Introducing a social capital view of board monitoring, we suggest that boards face two competing normative pressures - corporate elite norms and monitoring norms. How boards conform to such normative pressures for controlling excess CEO returns is affected by their external and internal social capital. Further, we substantiate our arguments by showing that powerful CEOs and institutional investors may facilitate or constrain the normative pressures existing in the social network and alter the effects of board social capital on excess CEO returns. Data from a sample of U.S. corporations listed on the Standard and Poor's 1,500 index from 1999 to 2010 largely support our framework. 2016 Journal Article http://hdl.handle.net/20.500.11937/50119 10.1002/smj.2339 John Wiley & Sons restricted
spellingShingle Sauerwald, S.
Lin, Z.
Peng, Mike
Board social capital and excess CEO returns
title Board social capital and excess CEO returns
title_full Board social capital and excess CEO returns
title_fullStr Board social capital and excess CEO returns
title_full_unstemmed Board social capital and excess CEO returns
title_short Board social capital and excess CEO returns
title_sort board social capital and excess ceo returns
url http://hdl.handle.net/20.500.11937/50119