scholarly journals Outside Directors and Firm Performance: The Moderating Effects of Ownership and Board Leadership Structure

2015 ◽  
Vol 8 (6) ◽  
Author(s):  
Marouan Kouki ◽  
Moncef Guizani
Keyword(s):  
Firm Performance ◽  
Moderating Effects ◽  
Outside Directors ◽  
Board Leadership ◽  
Leadership Structure ◽  
Board Leadership Structure

The Role of Board Leadership Structure in Firm Governance

2021 ◽  
Author(s):  
Danuse Bement ◽  
Ryan Krause
Keyword(s):  
Firm Performance ◽  
Independent Director ◽  
Negative Consequences ◽  
Ceo Duality ◽  
Board Chair ◽  
Board Committees ◽  
Board Leadership ◽  
Leadership Structure ◽  
Board Leadership Structure

Boards of directors are governing bodies that reside at the apex of the modern corporation. Boards monitor the behavior of firm management, provide managers access to knowledge, expertise, and external networks, and serve as advisors and sounding boards for the CEO. Board attributes such as board size and independence, director demographics, and firm ownership have all been studied as antecedents of effective board functioning and, ultimately, firm performance. Steady progress has been made toward understanding how boards influence firm outcomes, but several key questions about board leadership structure remain unresolved. Research on board leadership structure encompasses the study of board chairs, lead independent directors, and board committees. Board chair research indicates that when held by competent individuals, this key leadership position has the potential to contribute to efficient board functioning and firm performance. Researchers have found conflicting evidence regarding CEO duality, the practice of the CEO also serving as the board chair. The effect of this phenomenon—once ubiquitous among U.S. boards—ranges widely based on circumstances such as board independence, CEO power, and/or environmental conditions. Progressively, however, potential negative consequences of CEO duality proposed by agency theory appear to be counterbalanced by other governance mechanisms and regulatory changes. A popular mechanism for a compromise between the benefits of CEO duality and independent monitoring is to establish the role of a lead independent director. Although research on this role is in its early stage, results suggest that when implemented properly, the lead independent director can aid board monitoring without adding confusion to a unified chain of command. Board oversight committees, another key board leadership mechanism, improve directors’ access to information, enhance decision-making quality by allowing directors to focus on specialized topics outside of board meetings, and increase the speed of response to critical matters. Future research on the governance roles of boards, leadership configurations, and board committees is likely to explore theories beyond agency and resource dependence, as well as rely less on collecting archival data and more on finding creative ways to access rarely examined board interactions, such as board and committee meetings and executive sessions.

Board Leadership Structure and Firm Performance: Evidence from Listed Companies in Sri Lanka

2017 ◽  
Vol 7 (2) ◽  
pp. 391
Author(s):  
Saseela Balagobei ◽  
K.G.A. Udayakumara
Keyword(s):  
Firm Performance ◽  
Sri Lanka ◽  
Stock Exchange ◽  
Secondary Data ◽  
Listed Companies ◽  
Ceo Duality ◽  
Significant Difference ◽  
Board Leadership ◽  
Leadership Structure ◽  
Board Leadership Structure

Corporate Governance as a mechanism helps to align management's goals with those of the stakeholders that are to increase firm performance. The aim of this study is to identify the relationship between board leadership structure and firm performance of listed companies in Sri Lanka during the period of 2014-2016. The data was collected from the secondary data sources and board leadership structure is measured by CEO duality. The sample of this study consists of 100 firms listed in Colombo Stock Exchange based on market capitalization. For the purpose of data analysis, Pearson’s correlation analysis and independent sample t-test were used to examine the hypotheses of this study. The findings reveal that board leadership structure is positively correlated with firm performance in terms of Tobin’s Q and there is no significant difference in firm performance between CEO duality firms & non-duality firms.

scholarly journals Board leadership structure and performance of Chinese firms in Singapore

2015 ◽  
Vol 12 (4) ◽  
pp. 617-629
Author(s):  
Ricky W. F. Pang ◽  
Abul F. M. Shamsuddin
Keyword(s):  
Firm Performance ◽  
Stock Exchange ◽  
Board Independence ◽  
Stewardship Theory ◽  
Chinese Firms ◽  
Ceo Duality ◽  
Board Leadership ◽  
Leadership Structure ◽  
And Performance ◽  
Board Leadership Structure

We examine the effects of board leadership structure on the performance of Chinese firms listed on the Singapore Stock Exchange. Using a sample of 105 firms covering 2009 to 2011, we find that CEO duality positively affects firm performance that can largely be explained by stewardship theory. There is also support for contingency theory as the CEO duality-firm performance relationship depends on whether Chinese firms are incorporated in Singapore or otherwise. This study offers insights for corporate regulators to soften their stance on the monitoring clauses concerning CEO duality. Major stakeholders in Singapore-based Chinese firms may need to bring some balance to board independence, board size, and the nomination process, particularly where CEO duality improves firm performance.

scholarly journals Board leadership structure and earnings quality

2018 ◽  
Vol 3 (1) ◽  
pp. 82-111 ◽  
Author(s):  
Chinedu Francis Egbunike ◽  
Augustine N. Odum
Keyword(s):  
Earnings Quality ◽  
Main Concern ◽  
Board Structure ◽  
Executive Directors ◽  
Board Size ◽  
Ceo Duality ◽  
Content Type ◽  
Board Leadership ◽  
Leadership Structure ◽  
Board Leadership Structure

Purpose One main concern and issue affecting earnings quality is the extent to which managers manipulate earnings to mislead stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reported accounting numbers. This study builds on prior research and examines empirically the relationship between board leadership structure and earnings quality of manufacturing firms in Nigeria. The purpose of this paper is to specifically focus on four board structure characteristics: board size, composition, proportion of non-executive directors and CEO duality. Design/methodology/approach Data used for this investigation were collected from secondary sources, i.e. annual reports and accounts. The study used the Pooled OLS regression model to examine the effect of the board structure on earnings management for a sample of 45 non-financial listed Nigerian companies (conglomerates, consumer goods and industrial goods firms) for the years 2011 to 2016. Findings Based on the analysis, board size and board composition were positive and significant. However, proportion of non-executive directors was negative and significant; while, CEO duality was positive and statistically significant. It was consequently recommended that audit firms should review their audit business model and become more circumspect of their client, e.g. provide fraud assessment and checks for earnings quality. Boards should not just reflect size but rather the skills and expertise of individuals appointed to the board. Furtherance to this, the effectiveness of boards can be improved by committees and sub-committees allocation of duties. Originality/value Few studies have addressed this area in the country.

scholarly journals Board leadership: Antecedents and performance outcomes

2008 ◽  
Vol 6 (2) ◽  
pp. 61-72
Author(s):  
Yi Wang ◽  
Bob Clift
Keyword(s):  
Rational Choice ◽  
Strong Relationship ◽  
Performance Outcomes ◽  
Costs And Benefits ◽  
Subsequent Performance ◽  
Board Leadership ◽  
Leadership Structure ◽  
And Performance ◽  
Board Leadership Structure ◽  
Managerial Shareholdings

In this paper several theories, which make different predictions about the effect of board leadership structure on firm performance, are tested. The results indicate that, for Australian listed companies, there is no strong relationship between leadership structure and subsequent performance. It is reported that companies with higher blockholder ownership or lower managerial shareholdings tend to have an affiliated chairman; firm with higher managerial shareholdings tend to have an executive chairman. The evidence suggests that there is no one optimal leadership structure; each structure, which could be an outcome of a rational choice process influenced by other governance characteristics of individual firms, may have associated costs and benefits.

scholarly journals CEO DUALITY AND FIRM PERFORMANCE IN BRAZIL: EVIDENCE FROM 2008

2011 ◽  
Vol 5 (1) ◽  
pp. 11 ◽  
Author(s):  
Marcio Alves Amaral-Baptista ◽  
Marcelo Cabús Klotzle ◽  
Maria Angela Campelo de Melo
Keyword(s):  
Firm Performance ◽  
Performance Measures ◽  
Food Processing ◽  
Positive Association ◽  
Stewardship Theory ◽  
Ceo Duality ◽  
Leadership Structure ◽  
Systemic Crisis ◽  
Board Leadership Structure ◽  
The Relationship

This research investigates the relationship between CEO duality and the performance of Brazilian firms in 2008. While CEO duality has been the dominant board leadership structure of US corporations, Brazilian firms typically separate the roles of CEO and chairperson. During 2008, some Brazilian firms such as Sadia S/A (a multinational food processing company) adopted a dual leadership structure in an attempt to respond to the global systemic crisis. Using agency and stewardship theory perspectives, we tested our hypotheses with data of Brazilian listed companies. The empirical results indicate that companies where the CEO and chairperson are the same person have significantly higher performance (ROE). We also found a positive association between CEO duality and all other firm performance measures (ROA, ROC, MTBV), although the results were not statistically significant for these.

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