CEO and board chair roles: To split or not to split?

Dey, Aiyesha; Engel, Ellen; Liu, Xiaohui Gloria

doi:10.1016/j.jcorpfin.2011.09.001

Cited by 142 publications

(92 citation statements)

References 38 publications

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“…Thus, joining both functions in the same individual may be best suited to a firm's conditions -Efficiency Theory. 32,33 In the context of the financial crisis and for non-financial companies, Francis et al 19 find a negative but not statistically significant relationship between "duality" and performance. Consequently, board duality does not have a significant impact on performance.…”

Section: Ceo Duality and Performancementioning

confidence: 99%

Supervisory boards, financial crisis and bank performance: do board characteristics matter?

et al. 2016

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Failures in governance, especially in regard to boards of directors, have been blamed for the [2007][2008] financial crisis. The increased public scrutiny regarding the actions and role of the board of directors in banks, following the crisis, inspires to examine whether and to what extent the characteristics of banks' boards influence their performance in the crisis. Using a sample of 72 publicly listed European banks, we find that banks with more independent and busy boards experienced worse stock returns during the crisis.Conversely, the better performing banks had more banking experts serving as supervisory directors.Additionally, we find that gender and age diversity improved banks' performance during the crisis; hence, diversity matters. We also construct a governance quality index on the basis of board characteristics and conclude that governance quality positively affects banks' returns during the crisis. Overall, we find evidence that banks' performance during the financial crisis is a function of their boards' characteristics.

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Section: Ceo Duality and Performancementioning

confidence: 99%

Supervisory boards, financial crisis and bank performance: do board characteristics matter?

et al. 2016

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“…As a consequence, no unambiguous prediction exists for the effect of disproportionate insider control on board size under either the substitution or entrenchment hypothesis: Disproportionate control may enable insiders to weaken the monitoring and advising capacity of the board by keeping the board small, or, alternatively, by "packing" the board with directors bound by personal connections. Dey et al (2011) summarize the mixed findings on the combination of the roles of CEO and chairman of board. CEO-chairman identity may be an entrenchment mechanism, enabling the CEO to exercise undue influence, but also may provide the most efficient leadership structure.…”

Section: Board Sizementioning

confidence: 99%

Disproportionate insider control and board of director characteristics

Baran

Forst

2015

Journal of Corporate Finance

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“…See Krause et al (), Byrd et al (), and Dey et al () on the contrasting views and mixed empirical evidence regarding CEO duality and firm performance.…”

mentioning

confidence: 99%

CEO Duality and Firm Performance: Does Economic Policy Uncertainty Mediate the Relation?

2018

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Exploiting two exogenous shocks, we examine the relation between CEO–Chairman duality and firm performance. We report evidence that CEO duality benefits a firm when economic policy uncertainty is high. This implies that CEO–‐Chairman duality is an advantageous governance mechanism for coping with economic policy uncertainty. We show that the Sarbanes‐Oxley Act reduced firm performance if a firm had separate leadership in 2001. However, this negative effect was mitigated if a firm had combined leadership in 2001. The results suggest that CEO duality is complementary to board independence and that the value of CEO duality is contingent on a firm’s environment.

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CEO and board chair roles: To split or not to split?

Cited by 142 publications

References 38 publications

Supervisory boards, financial crisis and bank performance: do board characteristics matter?

Supervisory boards, financial crisis and bank performance: do board characteristics matter?

Disproportionate insider control and board of director characteristics

CEO Duality and Firm Performance: Does Economic Policy Uncertainty Mediate the Relation?

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