Journal of Business Ethics

, Volume 8, Issue 6, pp 455–462 | Cite as

On the antecedents of corporate severance agreements: An empirical assessment

  • Dan R. Dalton
  • Paula L. Rechner


This study of major corporations (n=481) provides an empirical assessment of the effects of several corporate governance variables (CEO duality, boards of director composition, officers and directors common stock holdings, institutional common stock holdings, number of majority owners) on the adoption of so-called severance agreements. A discriminant analysis indicates a significant multivariate function. Wilks lambda univariate analyses suggest that the percentage of common stock held by owners and directors and number of majority stock holders are the more robust discriminators.


Economic Growth Univariate Analysis Discriminant Analysis Corporate Governance Empirical Assessment 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Alibrandi, J. F.: 1985, ‘A CEO's dream board’, in E. Mattar and M. Ball (eds.), Handbook for Corporate Directors (pp. 23.1–23.5), New York: McGraw-Hill.Google Scholar
  2. Anderson, C. A. and Anthony, R. N.: 1986, The New Corporate Directors, New York: John Wiley & Sons.Google Scholar
  3. Bacon, J. and Brown, J. K.: 1984, The Board of Directors: Perspectives and Practices in Nine Countries, New York: The Conference Board, Inc.Google Scholar
  4. Berg, S. V. and Smith, S. K.: 1978, ‘CEO and board chairman: A quantitative study of dual vs. unitary board leadership’, Directors and Boards 3, 34–39.Google Scholar
  5. Bleicher, K. and Paul, H.: 1985, ‘Corporate governance systems in a multinational environment: Who knows what's best?’, in L. L. Waters (ed.), A Time for New Strategies, Bloomington, In. International Business Forum, 70–87.Google Scholar
  6. Business Week: 1984, An assault on golden parachutes and ‘greenmail’, August 13: 58.Google Scholar
  7. Business Week: 1986, Let's stow those golden chutes, May 5: 132.Google Scholar
  8. Chaganti, R. S., Mahajan, V., and Sharma, S.: 1985, ‘Corporate board size, composition and corporate failures in retailing industry’, Journal of Management Studies 22, 400–417.Google Scholar
  9. Cochran, R. L. and Wartick, S. L.: 1984, ‘“Golden parachutes”: A closer look’, California Management Review 26, 111–125.Google Scholar
  10. Cochran, R. L., Wood, R. A., and Jones, T. B.: 1985, ‘The composition of boards of directors and incidence of golden parachutes’, Academy of Management Journal 28, 664–671.Google Scholar
  11. Dalton, D. R. and Kesner, I. F.: 1987, ‘Composition and CEO duality in boards of directors: An international perspective’, Journal of International Business Studies 28, 33–42.Google Scholar
  12. Dalton, D. R., Kesner, I. F., and Rechner, P. L.: In press, ‘Corporate governance & boards of directors: An international, comparative perspective’, in R. Farmer (ed.), Advances in International Comparative Management, Greenwich, Conn.: JAI Press.Google Scholar
  13. Dayton, K. N.: 1984, ‘Corporate governance: The other side of the coin’, Harvard Business Review 62(1), 34–37.Google Scholar
  14. Feure, M.: 1965, Handbook for Corporate Directors, Englewood Cliffs, N.J.: Prentice Hall.Google Scholar
  15. Geneen, H.: 1984a, Managing, Garden City, NY: Doubleday & Co., Inc.Google Scholar
  16. Geneen, H. S.: 1984b, ‘Why directors can't protect the stockholders’, Fortune, September 17: 28–32.Google Scholar
  17. Herman, E. S.: 1981, Corporate Control, Corporate Power, London: Cambridge University Press.Google Scholar
  18. Kesner, I. F., Victor, B., and Lamont, B. T.: 1986, ‘Board composition and the commission of illegal acts: An investigation of Fortune 500 companies’, Academy of Management Journal 29, 789–799.Google Scholar
  19. Lauenstein, M.: 1980, ‘Organizing to develop strategic strategy’, Journal of Business Strategy 1, 70–73.Google Scholar
  20. Levy, L.: 1981, ‘Reforming board reform’, Harvard Business Review 59(1), pp. 166–172.Google Scholar
  21. Louden, J. K.: 1985, ‘The board chair: Models, changing roll, and external communication officer function’, in E. Mattar and M. Ball (eds.), Handbook for Corporate Directors (pp. 4.1–4.5), New York: McGraw-Hill Book Company.Google Scholar
  22. McLaughlin, D. J.: 1982, ‘On golden parachutes’, Directors & Boards, Summer: 22–25.Google Scholar
  23. Mills, G.: 1981, On the Board, Hampshire: Gower Publishing Company Ltd.Google Scholar
  24. Mintzberg, H.: 1983, Power In and Around Organizations, Englewood Cliffs, N.J.: Prentice Hall.Google Scholar
  25. Mueller, R. K.: 1978, New Directions for Directors, Lexington, Mass.: D. C. Heath & Co.Google Scholar
  26. O'Connell, J. J.: 1984, ‘Corporate governance: The European challenge’, in W. M. Hoffman, J. M. Moore, and D. A. Fedo (eds.), Corporate Governance and Institutionalizing Ethics, Lexington, MA.: Lexington Books, 49–54.Google Scholar
  27. Scotese, P. G.: 1985, ‘Fold up those golden parachutes’, Harvard Business Review, March–April: 168–171.Google Scholar
  28. Spencer, A.: 1983, On the Edge of the Organization: The Role of the Outside Director, New York: John Wiley & Sons.Google Scholar
  29. Steckmest, F. W.: 1982, Corporate Performance, New York: McGraw-Hill.Google Scholar
  30. Stroeberl, P. A. and Sherony, B. C.: 1985, ‘Board efficiency and effectiveness’, in E. Mattar (ed.), Handbook for Corporate Directors, New York: McGraw Hill: 12.1–12.10.Google Scholar
  31. Vance, S. C.: 1983, Corporate Leadership: Boards, Directors and Strategy, New York: McGraw-Hill.Google Scholar
  32. Waldo, Charles N.: 1985, Board of Directors: Their Changing Roles, Structure, and Information Needs, Westport, CT: Quorum Books.Google Scholar
  33. Williams, H. M.: 1979, January 8, “Corporate accountability — One year later”, address to the sixth annual Securities Regulation Institute, San Diego, CA.Google Scholar
  34. Williams, H. M.: 1980, In Securities and Exchange Commission, Staff Report on Corporate Accountability, Washington, D.C.: U.S. Government Printing Office.Google Scholar

Copyright information

© Kluwer Academic Publishers 1989

Authors and Affiliations

  • Dan R. Dalton
    • 1
  • Paula L. Rechner
  1. 1.Graduate School of BusinessIndiana UniversityBloomingtonUSA

Personalised recommendations