Compensate or monitor executives?

Detalhes bibliográficos
Autor(a) principal: Granzotto, Alberto
Data de Publicação: 2019
Outros Autores: Bernardi Sonza, Igor
Tipo de documento: Artigo
Idioma: por
Título da fonte: RACE (Joaçaba. Online)
Texto Completo: https://periodicos.unoesc.edu.br/race/article/view/20740
Resumo: The literature predicts two main ways to mitigate agency conflicts arising from the separation of control and ownership, but does not indicate which would be most appropriate. Thus, the present study sought to identify the efficiency of corporate governance mechanisms, when it comes to executive compensation (explicit and implicit incentives) and monitoring (board of directors, in resolving agency conflicts between the chief executives and shareholders of Brazilian publicly traded companies. Methodologically, dynamic multiple linear regression models, estimated by the Systemic Generalized Moments Method (GMM-Sys), were applied to an unbalanced data panel for 42 companies, from 1999 to 2016. It was identified that monitoring is the most appropriate method efficient to mitigate agency issues, in which directors are active agents in the process of verifying executive actions, positively affecting performance. This study puts to the test the prerogative that the board of directors is “figurative” in Brazil, performing significantly in monitoring.
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spelling Compensate or monitor executives?Compensar ou monitorar os executivos?Agency’s TheoryMonitoringCompensationTeoria da AgênciaMonitoramentoCompensaçãoThe literature predicts two main ways to mitigate agency conflicts arising from the separation of control and ownership, but does not indicate which would be most appropriate. Thus, the present study sought to identify the efficiency of corporate governance mechanisms, when it comes to executive compensation (explicit and implicit incentives) and monitoring (board of directors, in resolving agency conflicts between the chief executives and shareholders of Brazilian publicly traded companies. Methodologically, dynamic multiple linear regression models, estimated by the Systemic Generalized Moments Method (GMM-Sys), were applied to an unbalanced data panel for 42 companies, from 1999 to 2016. It was identified that monitoring is the most appropriate method efficient to mitigate agency issues, in which directors are active agents in the process of verifying executive actions, positively affecting performance. This study puts to the test the prerogative that the board of directors is “figurative” in Brazil, performing significantly in monitoring.A literatura prediz duas principais formas de mitigar os conflitos de agência que surgem pela separação do controle e da propriedade, porém não aponta qual seria o mais apropriado. Assim, o presente estudo buscou identificar a eficiência dos mecanismos de governança corporativa, em se tratando de compensação aos executivos (incentivos explícitos e implícitos) e monitoramento (conselho de administração), na resolução dos conflitos de agência, entre os executivos principais e os acionistas de empresas de capital aberto brasileiras. Para isso, foram aplicados modelos dinâmicos de regressão linear múltipla, estimados pelo Método dos Momentos Generalizados Sistêmico (GMM-Sys), em um painel de dados não balanceado para 42 empresas, de 1999 a 2016. Identificou-se que o monitoramento é o meio mais eficiente para mitigar os problemas de agência, em que os conselheiros são agentes ativos no processo de verificação das ações dos executivos, gerando resultados consistentes que afetam positivamente o desempenho. Este estudo coloca à prova a prerrogativa de que o conselho de administração é “figurativo” no Brasil, tendo um desempenho significativo no monitoramento.Universidade do Oeste de Santa Catarina2019-12-16info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttps://periodicos.unoesc.edu.br/race/article/view/2074010.18593/race.20740RACE - Revista de Administração, Contabilidade e Economia; Vol. 18 No. 3 (2019): RACE set./dez. 2019; 393-418RACE - Revista de Administração, Contabilidade e Economia; v. 18 n. 3 (2019): RACE set./dez. 2019; 393-4182179-49361678-6483reponame:RACE (Joaçaba. Online)instname:Universidade do Oeste de Santa Catarina (UNOESC)instacron:UNOESCporhttps://periodicos.unoesc.edu.br/race/article/view/20740/13941Copyright (c) 2019 Alberto Granzotto, Igor Bernardi Sonzainfo:eu-repo/semantics/openAccessGranzotto, AlbertoBernardi Sonza, Igor2020-10-16T21:43:39Zoai:ojs.periodicos.unoesc.edu.br:article/20740Revistahttps://portalperiodicos.unoesc.edu.br/racehttps://portalperiodicos.unoesc.edu.br/race/oairace@unoesc.edu.br||editora@unoesc.edu.br2179-49361678-6483opendoar:2020-10-16T21:43:39RACE (Joaçaba. Online) - Universidade do Oeste de Santa Catarina (UNOESC)false
dc.title.none.fl_str_mv Compensate or monitor executives?
Compensar ou monitorar os executivos?
title Compensate or monitor executives?
spellingShingle Compensate or monitor executives?
Granzotto, Alberto
Agency’s Theory
Monitoring
Compensation
Teoria da Agência
Monitoramento
Compensação
title_short Compensate or monitor executives?
title_full Compensate or monitor executives?
title_fullStr Compensate or monitor executives?
title_full_unstemmed Compensate or monitor executives?
title_sort Compensate or monitor executives?
author Granzotto, Alberto
author_facet Granzotto, Alberto
Bernardi Sonza, Igor
author_role author
author2 Bernardi Sonza, Igor
author2_role author
dc.contributor.author.fl_str_mv Granzotto, Alberto
Bernardi Sonza, Igor
dc.subject.por.fl_str_mv Agency’s Theory
Monitoring
Compensation
Teoria da Agência
Monitoramento
Compensação
topic Agency’s Theory
Monitoring
Compensation
Teoria da Agência
Monitoramento
Compensação
description The literature predicts two main ways to mitigate agency conflicts arising from the separation of control and ownership, but does not indicate which would be most appropriate. Thus, the present study sought to identify the efficiency of corporate governance mechanisms, when it comes to executive compensation (explicit and implicit incentives) and monitoring (board of directors, in resolving agency conflicts between the chief executives and shareholders of Brazilian publicly traded companies. Methodologically, dynamic multiple linear regression models, estimated by the Systemic Generalized Moments Method (GMM-Sys), were applied to an unbalanced data panel for 42 companies, from 1999 to 2016. It was identified that monitoring is the most appropriate method efficient to mitigate agency issues, in which directors are active agents in the process of verifying executive actions, positively affecting performance. This study puts to the test the prerogative that the board of directors is “figurative” in Brazil, performing significantly in monitoring.
publishDate 2019
dc.date.none.fl_str_mv 2019-12-16
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://periodicos.unoesc.edu.br/race/article/view/20740
10.18593/race.20740
url https://periodicos.unoesc.edu.br/race/article/view/20740
identifier_str_mv 10.18593/race.20740
dc.language.iso.fl_str_mv por
language por
dc.relation.none.fl_str_mv https://periodicos.unoesc.edu.br/race/article/view/20740/13941
dc.rights.driver.fl_str_mv Copyright (c) 2019 Alberto Granzotto, Igor Bernardi Sonza
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Copyright (c) 2019 Alberto Granzotto, Igor Bernardi Sonza
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Universidade do Oeste de Santa Catarina
publisher.none.fl_str_mv Universidade do Oeste de Santa Catarina
dc.source.none.fl_str_mv RACE - Revista de Administração, Contabilidade e Economia; Vol. 18 No. 3 (2019): RACE set./dez. 2019; 393-418
RACE - Revista de Administração, Contabilidade e Economia; v. 18 n. 3 (2019): RACE set./dez. 2019; 393-418
2179-4936
1678-6483
reponame:RACE (Joaçaba. Online)
instname:Universidade do Oeste de Santa Catarina (UNOESC)
instacron:UNOESC
instname_str Universidade do Oeste de Santa Catarina (UNOESC)
instacron_str UNOESC
institution UNOESC
reponame_str RACE (Joaçaba. Online)
collection RACE (Joaçaba. Online)
repository.name.fl_str_mv RACE (Joaçaba. Online) - Universidade do Oeste de Santa Catarina (UNOESC)
repository.mail.fl_str_mv race@unoesc.edu.br||editora@unoesc.edu.br
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