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one part in managing the optimal level of equity incentives. Younger executives usually tend to obtain express contracts and higher terms. Firms with excessive distress danger, high takeover probability, and high return volatility are significantly more likely to enter into new or revised severance contracts. Finally, ex submit payouts to managers are largely determined by the ex ante contract phrases. This study examines board monitoring when a reputable chief executive officer replacement is on the board. Inside The hottest im not a widow im a wife to a husband with wings leather pattern all over print tote bagadministrators whose talents are in greater demand externally, as reflected by their holding outside directorships, are more likely to turn into CEOs, and their presence is associated with higher pressured CEO turnover sensitivity to accounting performance and CEO compensation sensitivity to stock efficiency. These results reveal that sure insiders strengthen board monitoring by serving as a readily available CEO replacement and contradict the presumption that every one insiders are beneath CEO management. Furthermore, the outcomes persist when accounting for the endogenous agency choice of gifted inside directors. This paper investigates reporting honesty when managers have financial incentives to overstate their efficiency.
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