In this Closer Look, David F. Larcker and Brian Tayan at the Corporate Governance Research Program and researcher Sarah M. Larcker examine this issue in detail.

Read the complete Closer Look Series research piece

Explore More Topics, Issues and Controversies in Corporate Governance via the Stanford Closer Look Series 

The Closer Look series is a collection of short case studies through which we explore topics, issues, and controversies in corporate governance. In each study, we take a targeted look at a specific issue that is relevant to the current debate on governance and explain why it is so important.