Do Shareholders Benefit from the Adoption of Incentive Pay for Directors?
研究289家公司董事激励计划提案的市场反应，发现整体反应不显著，表明股东未必受益；但市场对无提名委员会公司的提案反应负面，凸显公司治理与激励有效性的关联。
We assess the stock market reaction to proposals of incentive plans for directors in a sample of 289 firms. The reaction is both economically and statistically insignificant. This result suggests that shareholders do not necessarily benefit from the adoption of such plans. Across firms, we find that the market reaction depends on whether the CEO is involved in director selection; stock markets react negatively to plans proposed by firms without nomination committees. These findings highlight the important link between corporate governance and the effectiveness of director incentive plans.