CEO and board chair roles: To split or not to split?

被引：85

作者：

Dey, Aiyesha ^{[1
]}

Engel, Ellen ^{[2
]}

Liu, Xiaohui ^{[3
]}

机构：

[1] Univ Minnesota, Carlson Sch Management, Minneapolis, MN 55455 USA

[2] Univ Chicago, Booth Sch Business, Chicago, IL 60637 USA

[3] Univ Texas Dallas, Sch Management, Richardson, TX 75080 USA

来源：

JOURNAL OF CORPORATE FINANCE | 2011年 / 17卷 / 05期

关键词：

CEO duality; Corporate governance; Board chairman; Firm performance; Pay-performance sensitivity; FIRM PERFORMANCE; AGENCY COSTS; DUALITY; GOVERNANCE; RISK;

D O I：

10.1016/j.jcorpfin.2011.09.001

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We examine the performance and compensation implications of firms' decisions to combine the roles of CEO and board chairman (duality). We document that firms that split the CEO and chairman positions due to investor pressure have significantly lower announcement returns and subsequent performance, and lower contributions of investments to shareholder wealth. Further, these performance outcomes are more negative for firms with higher predicted probabilities of duality based on a model of economic determinants of board leadership structure. We also find that pay-performance sensitivity in CEO compensation contracts are significantly lower following a split in the CEO and chairman positions, and significantly higher following a combination in these positions. Our evidence suggests that on average, board leadership choices by firms and market responses are consistent with efficiency arguments, and recent proposals for all firms to separate the CEO and chairman roles warrant more careful consideration. (C) 2011 Elsevier B.V. All rights reserved.

引用

页码：1595 / 1618

页数：24

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