CEO duality and firm performance: evidence from a developing country

Rashid, Afzalur (2010) CEO duality and firm performance: evidence from a developing country. Corporate Ownership and Control, 8 (1). pp. 163-175. ISSN 1727-9232

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Abstract

This study examines if the CEO duality influences firm performance in Bangladesh. It also examines the interaction of industries in influencing the relationship between CEO duality and firm performance. From an observation of 825 firm years this study uses a 2-stage least square regression (2SLS) analysis. The finding is that, there is a negative (non-significant) relationship between CEO duality and firm performance. However, when the industry interaction terms (the role of industries as moderating variable) are added, the CEO duality and firm performance is found to vary across industries. The findings of this study suggest that the CEO duality and firm performance is contingent; no single leadership structure is universal; both the leadership structure has cost and benefits. It is beneficial in some situation supporting the stewardship theory while it is not in other situations supporting the agency theory. This study contributes to the literature and ongoing debate on CEO duality and firm performance in the context of developing countries.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Depositing User: Dr Afzalur Rashid
Faculty / Department / School: Historic - Faculty of Business - School of Accounting, Economics and Finance
Date Deposited: 28 Feb 2011 04:24
Last Modified: 03 Jul 2013 00:29
Uncontrolled Keywords: agency theory; Bangladesh; board Chair; board leadership; CEO; corporate governance; power; stewardship theory
Fields of Research (FOR2008): 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150303 Corporate Governance and Stakeholder Engagement
Socio-Economic Objective (SEO2008): B Economic Development > 91 Economic Framework > 9104 Management and Productivity > 910402 Management
URI: http://eprints.usq.edu.au/id/eprint/18314

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