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Does CEO duality affect board independence? The moderating impact of founder ownership and family blockholding

Year: 2021

Type: article

Abstract: This study examines the impact of CEO duality on board independence and extends the knowledge by exploring whether the type of firm, the presence of family blockholding, or concentrated founder ownership moderates this impact. The analysis shows that CEO duality improves board independence. The empirical results support the theory of reputation and show that family-owned business group firms encourage board independence if firms have a duality leadership structure compared with non-family business groups, stand-alone, state-owned, and foreign-owned firms. The entrenchment effect of controlling shareholding on board independence overcomes the alignment effect of CEO duality and the results are significant for firms with low information costs and high level of monitoring.

Source: IIMB Management Review

DOI: 10.1016/j.iimb.2021.09.004

Authors: Shashank Bansal, M. Thenmozhi

Institutions: Indian Institute of Technology Dhanbad, Indian Institute of Technology Madras

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $1,200

OpenAlex ID: W3206022797

FWCI: 4.198

Cites: 67

Cited by: 19

Related to: 10