| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5109880 | Journal of Business Research | 2016 | 9 Pages |
Abstract
For a panel of U.S. firms, we employ system GMM to estimate a dynamic model of the relationship between firm performance and governance characteristics including board leadership structure. Our results provide convincing evidence that a joint leadership structure, i.e., CEO duality has statistically significant negative impacts on firm performance. We also document that this effect is positively moderated by board independence. The results are robust across a number of sensitivity tests. The findings are consistent with arguments advanced by both agency theorists and some management scholars that though duality might reduce firm performance through managerial entrenchment, it can provide benefits to the firm in the presence of board vigilance.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Augustine Duru, Raghavan J. Iyengar, Ernest M. Zampelli,