IDEAS home Printed from https://ideas.repec.org/a/eme/srjpps/srj-12-2018-0321.html
   My bibliography  Save this article

CEO duality and firm performance: the moderating roles of CEO informal power and board involvements

Author

Listed:
  • Chaminda Wijethilake
  • Athula Ekanayake

Abstract

Purpose - This study aims to draw on the resource dependence theory to synthesize the conflicting arguments as well as commonalities of the agency and stewardship perspectives on the relationship between CEO duality and firm performance. Design/methodology/approach - Multiple regression analysis is used to analyze the data collected from a sample of 212 large-scale publicly listed companies representing 20 sectors in the Colombo Stock Exchange in Sri Lanka. Findings - The research results based on all of 212 publicly listed companies in Sri Lanka show, in support of the agency theory, that CEO duality exerts a negative effect on firm performance when the CEO is equipped with additional informal power. Conversely, CEO duality exhibits a positive effect on firm performance when board involvements are high, a finding that supports the commonalities of the agency and stewardship theoretical perspectives. Practical implications - By examining the governance practices and concepts in an Asian developing economy, this study provides insight into the power dynamics between the CEO and the board of directors in managerial contexts that are largely different from those in western countries. Originality/value - This study expands the theoretical underpinning of corporate governance research by identifying the performance implications of CEO duality within the broad context of the resource provision of the board of directors and the informal power of CEOs.

Suggested Citation

  • Chaminda Wijethilake & Athula Ekanayake, 2020. "CEO duality and firm performance: the moderating roles of CEO informal power and board involvements," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 16(8), pages 1453-1474, January.
    • Handle: RePEc:eme:srjpps:srj-12-2018-0321
    DOI: 10.1108/SRJ-12-2018-0321
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/SRJ-12-2018-0321/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/SRJ-12-2018-0321/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/SRJ-12-2018-0321?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hassan, M. Kabir & Houston, Reza & Karim, M.Sydul & Sabit, Ahmed, 2023. "CEO duality and firm performance during the 2020 coronavirus outbreak," The Journal of Economic Asymmetries, Elsevier, vol. 27(C).
    2. Changrong Wang & Lufeng Gou & Xuemei Li, 2022. "Is Education Beneficial to Environmentally Friendly Behaviors? Evidence from CEOs," IJERPH, MDPI, vol. 19(18), pages 1-21, September.
    3. Mohit Pathak & Arti Chandani, 2023. "Board composition, executive compensation, and financial performance: panel evidence from India," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 20(4), pages 359-373, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:srjpps:srj-12-2018-0321. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.