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CEO Duality and Firm Performance Revisited

Author

Listed:
  • Mohammadi, Ali

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

  • Basir, Nada O.

    (Faculty of Business and IT, University of Ontario Institute of Technology)

  • Lööf, Hans

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

Abstract

This paper replicates and extends the empirical work of Boyd’s 1995 article: CEO Duality and Firm Performance: A Contingency Model. We retest Boyd’s hypotheses using a database of over 11,000 Swedish firms from the year 2005 to 2009. Similar to Boyd, we find that CEO duality is positively correlated to firm performance and the effect varies across environmental dimensions of munificence, dynamism and complexity. Using quantile regression, we also show that the positive impact of CEO duality increases by firm performance. Our findings hold after we control for potential endogeneity concerns.

Suggested Citation

  • Mohammadi, Ali & Basir, Nada O. & Lööf, Hans, 2015. "CEO Duality and Firm Performance Revisited," Working Paper Series in Economics and Institutions of Innovation 400, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0400
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    File URL: https://static.sys.kth.se/itm/wp/cesis/cesiswp400.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    CEO duality; boards of directors; agency theory; stewardship theory; replication;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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