CEO duality and firm performance: Evidence from an exogenous shock to the competitive environment

Yang, Tina; Zhao, Shan

doi:10.1016/j.jbankfin.2014.04.008

Cited by 216 publications

(167 citation statements)

References 75 publications

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“…Our results tie in with a growing literature on corporate governance and performance that demonstrate that in the presence of ambiguous empirical results, contextual factors and contingencies, such as ownership, competition and institutional factors could matter in determining the effectiveness of any governance mechanism (Desender et al 2013;Yang and Zhao 2014;Peng et al 2007). With regard to bank ownership that provides us with the specific context in this paper, our findings of differential effects of board independence, CEO duality and CEO tenure across ownership groups suggest that the results pertaining to the performance impact of such governance mechanisms on private sector banks cannot be necessarily applied to state-owned banks.…”

Section: Introductionsupporting

confidence: 79%

“…In the empirical literature it is customary to control for these factors to avoid any spurious relation between the dependent variable and the variables of interest. Following existing literature (Berger et al 2010;Liang et al 2013;Faleye and Krishnan 2017) and the unique regulatory requirements of bank lending in India (Sarkar et al 1998;Bhaumik and Dimova 2004;Yang and Zhao 2014), we use a number of conditioning variables in our regression. These variables include (i) Log Assets, measured by the logarithm of total assets, to proxy for bank's market power and other lending characteristics; (ii) Loans to Assets, measured by the percentage of loans and advances to total assets, to account for possible differences in business models across banks and (ii) Priority Sector Lending, measured by the percentage of priority sector lending to total loans and advances, to proxy for the extent of government intervention in bank lending with potential effects on bank outcomes.…”

Section: Control Variablesmentioning

confidence: 99%

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Bank Ownership, Board Characteristics and Performance: Evidence from Commercial Banks in India

Sarkar

2018

IJFS

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Abstract:We study the effect of board governance in state-owned and private banks by undertaking a study of commercial banks in India that has both bank groups. Covering a ten-year period from 2003 to 2012 that witnessed a large number of governance reforms in India, the results of our empirical analysis provide evidence of strong ownership effects with board independence exhibiting a significant positive correlation with the performance of private banks and a significant but negative correlation with the performance of state-owned banks. The effect of CEO duality is negative in state-owned banks where incidence of CEO duality is high. We find that a longer CEO tenure has significant positive effects on bank outcomes with these effects strengthening in the later years of CEO tenure. Our results have governance implications for strengthening the composition of board of directors and CEO tenure especially in state-owned banks.

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Section: Introductionsupporting

confidence: 79%

Section: Control Variablesmentioning

confidence: 99%

Bank Ownership, Board Characteristics and Performance: Evidence from Commercial Banks in India

Sarkar

2018

IJFS

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“…According to Yang and Zhao (2014) the separation of post of CEO and the Chairman of the Board is one of the most debatable corporate governance issues in recent years. The Board of directors will define duties to Chairman and CEO, whether these are the same or separate.…”

Section: Ceo Dualitymentioning

confidence: 99%

An empirical analysis of corporate governance and firm value: Evidence from KSE-100 Index

Khan¹,

Tanveer²,

Malik³

2017

10.5267/j.ac

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This paper investigates the impact of corporate governance on firm value measured by Tobin's Q. Different corporate governance proxies i.e. board size, board independence, audit committee and CEO duality are interacted with firm value. A sample of 91 nonfinancial firms listed on KSE was selected over the period 2010-2014. The findings of the study show that board size and CEO duality had negative impacts on firm value. Moreover, board size, non-executive directors and audit committee had positive and significant impacts on firm value.Growing Science Ltd. All rights reserved. 7

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“…Conversely, many other studies found the CEO duality has a positive effect on firm performance under certain circumstances. For instance, Yang and Zhao (2012) revealed that firms with CEO duality outperform the firms without CEO duality. Moreover, the study has uncovered the advantages of CEO duality in saving information costs and making speedy decisions (Yang & Zhao, 2012).…”

Section: Ceo Dualitymentioning

confidence: 99%

“…For instance, Yang and Zhao (2012) revealed that firms with CEO duality outperform the firms without CEO duality. Moreover, the study has uncovered the advantages of CEO duality in saving information costs and making speedy decisions (Yang & Zhao, 2012). Nonetheless, the research of CEO duality in SMEs context is very rare in corporate governance literature.…”

Section: Ceo Dualitymentioning

confidence: 99%

Board of Directors and Small Medium Enterprise's Firm Growth with Firm Culture as Moderating Factor in Malaysia

Omar

Lim

Basiruddin

2014

Procedia - Social and Behavioral Sciences

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This conceptual paper is based on a study that explores differences of board of directors' attributes and SMEs firm growth based on firm culture types in Malaysia. The objectives are to explore a model for overall SMEs firm growth based on board of directors' attributes, to examine the relationship between board entrepreneurial and guanxi in relations with SMEs firm growth. This paper also aims to identify differences of board of directors' attributes and SMEs firm growth based on firm culture types. One of the most significant theoretical implications is the introduction of a conceptual model on SMEs firm growth, board of directors' attributes and firm culture based on Malaysia context. From the practitioners' perspectives, this paper suggests improvement of existing approaches to the governance of SMEs.

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CEO duality and firm performance: Evidence from an exogenous shock to the competitive environment

Cited by 216 publications

References 75 publications

Bank Ownership, Board Characteristics and Performance: Evidence from Commercial Banks in India

Bank Ownership, Board Characteristics and Performance: Evidence from Commercial Banks in India

An empirical analysis of corporate governance and firm value: Evidence from KSE-100 Index

Board of Directors and Small Medium Enterprise's Firm Growth with Firm Culture as Moderating Factor in Malaysia

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