Collaborative Research on Corporate Governance as an Endogenous Economic Institution The research outlined in this proposal aims to understand factors affecting corporate board structure and the effect of structure on board effectiveness. The theoretical basis of the work is a model in which CEOs who perform well gain bargaining power in negotiating corporate governance which reduces the effectiveness of boards at monitoring. The research proposes to test implications of the theory on three data sets which are to be collected: a 60 year panel data set on the evolution of corporate governance systems; a panel data set on the governance of medical charities, and a data set of stock prices and CEO changes. Refinements of the theoretical model (e.g., allowing for free riding of board members) will also be investigated.
