CEO duality and firm performance: a contingency model
Article Abstract:
CEO duality exists if the chief executive of a corporation doubles as chairperson of the board of directors. While this practice of simultaneously appointing an individual as chief executive and chairperson has gained popularity through the years, it has become the subject of criticism of late. Poor performance and inability to react to change in such organizations as General Motors Corp., Digital Equipment Corp. and Goodyear Tire and Rubber Co. has been blamed on CEO duality. To test the validity of this assumption, a study on the effect of CEO duality on firm performance is conducted. It combines the agency and stewardship perspectives on duality to provide a clearer picture of the relationship between duality and performance. Results show that CEO duality can have either positive or negative effect on firm performance, depending on the industry environment.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1995
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CEO duality and firm performance: what's the fuss?
Article Abstract:
Public interest in the issues of corporate governance and CEO duality has been revived by increasing shareholder activism in response to deteriorating corporate performance and falling shareholder value. Although there is little conclusive evidence supporting it, there is widespread belief that the role of the top executive as both chairman of the board and chief executive officer is to be blamed for weakening organizational performance and the company's ineffectiveness in keeping up with the changing marketplace. A study is conducted to examine this relationship between CEO duality and firm performance. Findings indicate that a company's duality status is irrelevant to the market, that this status has little impact on changes in operating performance and that the relationship between duality and long-term performance is not very strong.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1996
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CEO duality and organizational performance: a longitudinal analysis
Article Abstract:
Firms increasingly are adopting the dual leadership structure in which a CEO also serves as the chairman of the board. Proponents of the dual leadership structure believe that a CEO serving as chairman of the board sharpens the focus of operations and planning. Proponents of the independent leadership structure, in which separate individuals fill the role of CEO and chairman of the board, argue that the dual leadership structure reduces the board's ability to govern a firm. Data from 250 randomly selected firms of the Fortune 500 for the years between 1978 and 1983 was analyzed to ascertain the effects of dual structure on the financial performance of firms. Research results support the arguments of the proponents of an independent leadership structure.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1991
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