Organization and Strategy Seminar（2016-20）

Topic：Information complexity and recruitment of connected outside directors

Speaker:GuoliChen, INSEAD

Time:Wednesday, 21December, 10:30-12:00

Location: Room 109 , Guanghua Building 2

Abstract:

        Corporate governance reforms have called for greater board independence by increasing outside directors who are more independent of managerial influence. Yet, outsiders bring less firm-specific information to their monitoring and advisory functions. We examine how firms balance the pressure for board independence with the need for insider knowledge. We argue that since complex firms require directors with firm-specific information, they are more likely to hire outsiders with ties to incumbent inside directors. These “connected outside directors” rely on such ties to facilitate information exchange, thereby relieving the information asymmetry problem faced by newly-hired outsiders. We examine its boundary conditions to clarify the effect CEO entrenchment vs. information needs, and we discuss its implications on CEO compensation design.

Introduction:

        Guoli Chen is Associate Professor of Strategy at INSEAD. He received his PhD in strategic management from the Pennsylvania State University. He teaches Strategy, Value Innovation, Incentives Design and Corporate Governance to MBAs, Executives and PhD participants.

        Guoli's research focuses on the influence of CEOs, top executives, and boards of directors on firms' strategic choices and organizational outcomes, as well as the interaction and dynamics in the top management team and CEO-board relationships. He is interested in organizational growth, renewal and corporate development activities, such as IPOs, M&As, innovation, globalization. He has published in several top academic journals, such as Administrative Science Quarterly,

        Academy of Management Journal, Strategic Management Journal, Organization Science, Journal of Business Venturing, Leadership Quarterly and Strategic Organization. His papers have received awards at the Academy of Management Conference and Strategic Management Society Conference. He was a representative-at-large at the Corporate Strategy and Corporate Governance interest group of Strategic Management Society and serves on the editorial board of Academy of Management Journal.

        Prior to academia, Guoli worked as an investment banker at Daiwa Securities SMBC. He provided financial consulting in the areas of IPOs, fund raising, company restructuring.

        //www.researchgate.net/profile/Guoli_Chen

        Your participation is warmly welcomed!