CEO duality and firm performance in the U.S. restaurant industry: Moderating role of restaurant type

Guillet, Basak Denizci; Seo, Kwanglim; Küçükusta, Deniz; Lee, Seoki

doi:10.1016/j.ijhm.2012.10.004

Cited by 56 publications

(65 citation statements)

References 54 publications

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“…Previous research investigating the impact of CEO duality on enhanced firm performance provided mixed results. The outcomes of the current literature are inconclusive, ranging from positive to negative, and sometimes indicating an insignificant relationship between CEO duality and firm performance [4][5][6][7]. Scholars arguing a negative association between CEO duality and firm performance support their findings based on agency theory.…”

Section: Introductionmentioning

confidence: 89%

“…This advocates that CEO duality encounters the board's capability/abilities to work as a monitor. Thus, this decreases the efficiency of organizational operations, such as monitoring activities performed by selected boards, and consequently results in the waste of resources [7]. As such, agency theory emphasizes the separate roles of the CEO and the chairman of directors [30].…”

Section: Ceo Duality and Firm Performancementioning

confidence: 99%

“…CEO duality highlights the benefits of active stewardship due to a CEO's knowledge about the firm's strategic policies and challenges [46]. Many studies have discussed the positive relationship of CEO duality and firm performance with different viable firm performance measurements such as ROA, ROE, sales growth, and Tobin's Q [7,13,49,50]. Some studies have not provided a significant impact of CEO duality on firm performance [6,51].…”

Section: Ceo Duality and Firm Performancementioning

confidence: 99%

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The Effects of Market Competition, Capital Structure, and CEO Duality on Firm Performance: A Mediation Analysis by Incorporating the GMM Model Technique

et al. 2020

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This current study is one of the few investigations to conduct a focalized examination of the relationship between CEO duality and firm performance; however, this relationship seems to be imprecise due to the impact of the invention mechanism. This study explores the effect of CEO duality to achieve firm performance through the mediating effects of capital structure and market competition, which is an innovative model. The study incorporated the generalized method of moments (GMM) model to examine the proposed association of the CEO duality and firm performance, and the findings specified a negative relationship between CEO duality and firm performance. The results indicated that capital structure partially mediated the association between CEO duality and firm performance. The results also showed that market competition fully mediated this linkage between CEO duality and firm performance, which in turn specified a significant positive relationship with market competition, which mediated a positive relationship. By incorporating these mediators, the results determined that CEO duality reduces firm performance through the capital structure; however, it enhances firm performance by stimulating market competition.

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Section: Introductionmentioning

confidence: 89%

Section: Ceo Duality and Firm Performancementioning

confidence: 99%

Section: Ceo Duality and Firm Performancementioning

confidence: 99%

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The Effects of Market Competition, Capital Structure, and CEO Duality on Firm Performance: A Mediation Analysis by Incorporating the GMM Model Technique

et al. 2020

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“…Guillet, Seo, Kucukusta, and Lee () employ a sample of restaurants to test the relationship between CEO duality and restaurant performance. They find that there is positive relationship between two.…”

Section: Literature Reviewmentioning

confidence: 99%

Do firms with dual chief executive officers perform better than their counterparts?

Ueng

Ramaswamy

2019

J Corp Accounting Finance

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Agency theory contends that shareholder interests require protection by separation of the roles of board chair and chief executive officer (CEO). Duality (CEO also chairman of the board) increases the likelihood of the CEO entrenchment by reducing board monitoring effectiveness. Stewardship theory argues that shareholder interests are maximized by having the dual CEOs. According to stewardship theory, firms with dual CEOs have some major advantages over their counterparts. Such CEOs establish strong leadership and provide better strategic directions for the firm. Consequently, shareholders benefit form dual CEOs. Evidence on the relationship between dual CEO and firm performance is mixed. While some studies found that there is a positive relationship between two variables, others found an inverse relationship between two. This study attempts to shed some light on this issue. Results from the study indicate that there is a statistically significantly positive relationship between dual CEO and the firm's size, the number of insider director, and the percentage of shares held by the control shareholders. Results from this study indicated that there is no significant relationship between the CEO duality and financial performance in the short run. However, the firms with dual CEO, on average, perform better than their counterparts in the long run.

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“…Por otra parte, la teoría de servidores tiene una posición relajada en cuanto a la dualidad, ya que considera al administrador como una persona que se ordena bajo una idea colectivista y pro-organizativa (Eddleston, Kellermanns, y Zellweger, 2012), y por lo tanto asume que los gerentes son intrínsecamente dignos de confianza y son buenos administradores; ellos están conscientes, según la teoría, que es su deber salvaguardar los recursos de la empresa y lograr el mejor desempeño (Davis, Schoorman y Donaldson, 1997;Gaur et al, 2015). La teoría de servidores sostiene que el directorio debe tener un rol de apoyo o asesoramiento con el poder ejecutivo de las firmas, y esto se materializaría correctamente si la estructura del liderazgo fuese dual; además permite afrontar con mayor rapidez los problemas, y asimismo elimina la posibilidad de rivalidad entre el presidente y el máximo directivo y con ello agiliza la toma de decisiones y disminuye los costos de transferencia de información (Guillet, Seo, Kucukusta, y Lee, 2013;Pham, Oh y Pech, 2015;Wang, Sun, Yu, y Zhang, 2014). Bajo esta teoría, un ceo-Presidente siente satisfacción profesional, personal y social por asumir una doble función (Taniman y Shannassy, 2015), además esto puede ser propio de máximos ejecutivos fundadores (Gao y Jain, 2012).…”

Section: Marco Teóricounclassified

Factores que influyen en la preferencia por el tipo de estructura de liderazgo del máximo cuerpo colegiado de universidades iberoamericanas

Romero

Mancilla

Ganga-Contreras

2019

RESU

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Este trabajo muestra cómo influyen las características personales y el contexto organizacional en individuos que son parte de la comunidad académica de universidades iberoamericanas para preferir un tipo de estructura de liderazgo de los gobiernos universitarios, el basado en la teoría de agencia o en la teoría de servidores. El estudio se realiza en universidades donde actualmente el rector preside el Máximo Cuerpo Colegiado (mcc), es decir, el rector tiene un doble rol. Para alcanzar el objetivo del trabajo se realizan análisis no paramétricos y dos procedimientos de emparejamiento (matching) con aplicación de remuestreo (bootstraping) para tener resultados más precisos.

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CEO duality and firm performance in the U.S. restaurant industry: Moderating role of restaurant type

Cited by 56 publications

References 54 publications

The Effects of Market Competition, Capital Structure, and CEO Duality on Firm Performance: A Mediation Analysis by Incorporating the GMM Model Technique

The Effects of Market Competition, Capital Structure, and CEO Duality on Firm Performance: A Mediation Analysis by Incorporating the GMM Model Technique

Do firms with dual chief executive officers perform better than their counterparts?

Factores que influyen en la preferencia por el tipo de estructura de liderazgo del máximo cuerpo colegiado de universidades iberoamericanas

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