Excerpt
Excerpt
The Myth that Insulating Boards Serves Long-Term Value. Lucian Bebchuk, September 2013, Paper. "According to an influential view in corporate law writings and debates, pressure from shareholders leads companies to take myopic actions that are costly in the long term, and insulating boards from such pressure serves the long-term interests of companies as well as their shareholders. This board insulation claim has been regularly invoked in a wide range of contexts to support existing or tighter limits on shareholder rights and involvement. This paper subjects this view to a comprehensive examination and finds it wanting..." Link verified June 19, 2014