The Moderating Effect of the CEO Duality towards the Influence of the Ownership Structure on the Firm Performance among Jordanian Public Shareholders Companies

2019 ◽  
Vol 8 (3) ◽  
Author(s):  
Mohammad Mustafa Dakhlallh ◽  
Nik MohdNorfadzilah Nik Mohd Rashid ◽  
Wan Amalina Wan Abdullah ◽  
Abdalrahman Mustafa Dakhlallh
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Moderating Effect ◽  
Ceo Duality

scholarly journals The board of directors and firm performance: empirical evidence from listed companies

2019 ◽  
Vol 19 (3) ◽  
pp. 508-551 ◽  
Author(s):  
Alessandro Merendino ◽  
Rob Melville
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Agency Theory ◽  
Ownership Structure ◽  
Listed Companies ◽  
Independent Directors ◽  
Board Structure ◽  
Board Size ◽  
Ceo Duality ◽  
Content Type

PurposeThis study aims to reconcile some of the conflicting results in prior studies of the board structure–firm performance relationship and to evaluate the effectiveness and applicability of agency theory in the specific context of Italian corporate governance practice.Design/methodology/approachThis research applies a dynamic generalised method of moments on a sample of Italian listed companies over the period 2003-2015. Proxies for corporate governance mechanisms are the board size, the level of board independence, ownership structure, shareholder agreements and CEO–chairman leadership.FindingsWhile directors elected by minority shareholders are not able to impact performance, independent directors do have a non-linear effect on performance. Board size has a positive effect on firm performance for lower levels of board size. Ownership structure per se and shareholder agreements do not affect firm performance.Research limitations/implicationsThis paper contributes to the literature on agency theory by reconciling some of the conflicting results inherent in the board structure–performance relationship. Firm performance is not necessarily improved by having a high number of independent directors on the board. Ownership structure and composition do not affect firm performance; therefore, greater monitoring provided by concentrated ownership does not necessarily lead to stronger firm performance.Practical implicationsThis paper suggests that Italian corporate governance law should improve the rules and effectiveness of minority directors by analysing whether they are able to impede the main shareholders to expropriate private benefits on the expenses of the minority. The legislator should not impose any restrictive regulations with regard to CEO duality, as the influence of CEO duality on performance may vary with respect to the unique characteristics of each company.Originality/valueThe results enrich the understanding of the applicability of agency theory in listed companies, especially in Italy. Additionally, this paper provides a comprehensive synthesis of research evidence of agency theory studies.

scholarly journals CEO duality and firm performance - an endogenous issue

2008 ◽  
Vol 6 (1) ◽  
pp. 58-65 ◽  
Author(s):  
Chia-Wei Chen ◽  
Jang Shee Barry Lin ◽  
Bingsheng Yi
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Recent Trend ◽  
Firm Characteristics ◽  
Ceo Duality ◽  
Ceo Leadership ◽  
Leadership Structure ◽  
The Relationship ◽  
Firm Characteristic ◽  
Number Of Firms

Whether dual CEO leadership structure is better for corporations is one of the most hotly debated issues in corporate finance. This paper uses a recent data to re-examine the relationship between CEO duality and firm performance, controlling for other important variables such as firm characteristics, ownership structure, CEO compensation, and agency costs. We find a recent trend of increased number of firms converting from dual to non-dual CEO structure. However, our empirical results do not show a significant relationship between CEO duality and firm performance nor improvement in firm performance after change in leadership structure. We find evidence of endogeneity, and we attribute the insignificance of the relationship between CEO duality and firm performance to the possibility that CEO duality is endogenously and optimally determined given firm characteristic and ownership structure.

scholarly journals THE MODERATING EFFECT OF INTELLECTUAL CAPITAL ON THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE AND COMPANIES PERFORMANCE IN PAKISTAN

2018 ◽  
Vol 2 (1) ◽  
pp. 12-22
Author(s):  
Sajad Nawaz Khan ◽  
Engku Ismail Ali
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Intellectual Capital ◽  
Gender Diversity ◽  
Moderating Effect ◽  
Board Independence ◽  
Board Size ◽  
Ceo Duality ◽  
Financial Expertise ◽  
The Relationship

During the global financial crises, the prominence of corporate governance was realized after the major loopholes identified in corporate policies and conspicuous corporate scandals all over the world. Developed countries have passed several laws such as the “Say on Pay” or the “Sarbanes-Oxley Act” to protect the shareholder's wealth. On the contrary, developing countries are still thriving to gain effective corporate governance recognition. This study examined the moderating effect of intellectual capital on the relationship between corporate governance and firm performance. The current study uses four-year panel data from 2012 to 2015. Linear regression, correlated panels corrected standard errors (PCSEs) are used in the analysis. The findings of the study indicate that the intellectual capital has a significant effect on the relationship between board size, board financial expertise, CEO duality, gender diversity and firm performance (ROA). On the other hand, it does not seem to moderate the relationship between board independence and firm performance (ROA). Similarly, the findings indicate that intellectual capital has a significant relationship between board size, board independence, CEO duality, gender diversity and firm performance (ROE) has no moderating effect on the relationship between board financial expertise and firm performance (ROE). Moreover, the empirical results highlight the significance of intellectual capital for regulations and policy making.

The moderating effect of CEO duality on the relationship between geographic diversification and firm performance in the US lodging industry

2019 ◽  
Vol 31 (3) ◽  
pp. 1488-1504 ◽  
Author(s):  
Hyoung Ju Song ◽  
Kyung Ho Kang
Keyword(s):  
Firm Performance ◽  
Random Effects ◽  
Moderating Effect ◽  
Lodging Industry ◽  
Geographic Diversification ◽  
Ceo Duality ◽  
Content Type ◽  
The Us ◽  
Moderating Role

Purpose The purpose of this study is to investigate the moderating role of CEO duality on the geographic diversification–firm performance relationship in the US lodging industry. Design/methodology/approach To examine the individual effect of geographic diversification and the moderating effect of CEO duality, this study adopts random effects regression. Additionally, to appropriately address the endogeneity issue, this study uses random effects regression with the instrumental variable method. The sample period spans 1990-2015 and 258 firm-year observations are included. Findings This study finds that geographic diversification has a positive and significant effect on firm performance. Also, the result shows a positive and significant moderating role of CEO duality, which implies that the magnitude of the impact of geographic diversification on firm performance is significantly greater when CEO duality exists. Research limitations/implications Although it has a limitation of applying the results of this study to privately held lodging firms in other countries, US public lodging firms are encouraged to consider a corporate governance structure incorporating CEO duality to maximize the effect of geographic diversification on firm performance. Originality/value This study contributes to the hospitality literature by providing a unique dimension that the influence of geographic diversification is contingent on the adoption of CEO duality. And, the results of this study provide practical guidelines for the lodging firms’ implementation of geographic diversification.

How Network Structure Impacts Firm Performance : The Moderating Effect of Network Openness and Interfirm Governance

2017 ◽  
Vol 19 (1) ◽  
pp. 19-34
Author(s):  
Kyunghee Kim ◽  
Jeongtae Kim ◽  
Junhong Min ◽  
Sungmin Ryu
Keyword(s):  
Firm Performance ◽  
Network Structure ◽  
Moderating Effect ◽  
Interfirm Governance
Sign in / Sign up

Export Citation Format

Share Document