TOPIC: Corporate governance (top management, managerial cognition, etc.)

Companies: AIG and ALL STATES

READINGS:

1) Core, Holthausen, Larcker 1999 “Corporate governance, chief executive officer compensation, and firm performance”

2) Amihud & Lev 1981 “Risk reduction as a managerial motive for conglomerate mergers”

3) Yoo and Jung 2015 “Corporate governance change and performance…”

4) Hammond, Keeney, & Raiffa 1998 “The hidden traps in decision making”

5) Hayward and Hambrick 1997 “Explaining the Premiums Paid for Large Acquisitions: Evidence of CEO Hubris”

6) Audia, Locke, and Smith 2000 “The Paradox of Success: An Archival and a Laboratory Study of Strategic Persistence Following Radical Environmental Change”

Question

2) Compare the two companie’s top management teams. What problems do you see using ideas from readings 4-6? If you were members of the boards of directors, what changes would you make in the top management team of this company?