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Board leadership structure and corporate headquarters location

Author

Listed:
  • Nilakshi Borah

    (University of Wisconsin-La Crosse)

  • Hui James

    (University of Texas at Tyler, SCOB 360.05)

Abstract

This study examines empirically if corporate headquarters location matters for board leadership structure under different asymmetric information settings. We examine the impact of corporate headquarters location on CEO duality for the period 1998–2013. Using the Metropolitan Statistical Area (MSA) to define the location of corporate headquarters, we find that metropolitan firms are more likely to have CEO-Chairman duality than rural firms. Utilizing idiosyncratic risk and analyst forecast error or dispersion to proxy for information asymmetry, we find that metropolitan firms are more likely to have CEO-chairman duality than rural firms in the low information asymmetry setting. Our findings suggest that corporate headquarters location is an important determinant of board leadership structure.

Suggested Citation

  • Nilakshi Borah & Hui James, 2020. "Board leadership structure and corporate headquarters location," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 44(1), pages 35-58, January.
    • Handle: RePEc:spr:jecfin:v:44:y:2020:i:1:d:10.1007_s12197-019-09475-7
    DOI: 10.1007/s12197-019-09475-7
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    More about this item

    Keywords

    Board leadership; CEO-chairman duality; Firm geography; Information asymmetry;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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