The Control of Generalist on Internal and External Governance Mechanisms

• In Event: Management Accounting 2

Abstract

This study examines how CEO general human capital affects internal corporate governance (monitoring) and external corporate governance (institutional investors) across firms. Our results CEO general human capital has a positive effect on corporate governance mechanism, and explains variation in CEO compensation schemes. Further, we show that generalist CEOs with strong general human capital moderate relation between the status of corporate governance and cash compensations schemes. These results are consistent with the notion that CEO managerial human capital with his or her bargaining power influence on corporate governance regardless of governance regulations. Our findings advance the academic understanding of managerial human capital effect with bargaining power as well as provide practical implications to regulations.

Author

• Kwangjoo Koo, William Paterson University of New Jersey