TOPIC: Corporate governance (top management, managerial cognition, etc.) Compani
ID: 382258 • Letter: T
Question
TOPIC: Corporate governance (top management, managerial cognition, etc.)
Companies: AIG & ALL STATES
HELPFUL 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 & Jung 2015 “Corporate governance change and performance…”
4)Hammond, Keeney, & Raiffa 1998 “The hidden traps in decision making”
5)Hayward & Hambrick 1997 “Explaining the Premiums Paid for Large Acquisitions: Evidence of CEO Hubris”
6)Audia, Locke, & Smith 2000 “The Paradox of Success: An Archival and a Laboratory Study of Strategic Persistence Following Radical Environmental Change”
Questions
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?
Explanation / Answer
From the readings Hammad keeny and raffia 1998 tells about the hidden traps in decision making. Those are status quo trap, sunk cost trap,framing trap,over confidence trap etc can define the traps in decision making.These will help in development of top most managerial skills which are required in decision making which is the first step in planning and success.
According to Hayward and hambrick 1997 we can detect the CEO hubris in explaining the large premium's paid for large acquisitios.The role of CEO is most important in the development of organization.
In case of highly reputed company like AIG it seems easier to attract the investors and working of technical teams is also most important. Individuals on their own have to decide whether they can afford the happens to them or not it makes the decided step.AIG offers high renewals and it encourages investors.
In case of All states also offers renewal benefits and premium benefits for the individuals. Proper management leads to success.
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