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The Effects of CEO Trustworthiness on Directors’ Monitoring and Resource Provision

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  • Esther Del Brio
  • Toru Yoshikawa
  • Catherine Connelly
  • Wee Tan

Abstract

Because of the importance of board members’ resource provision and monitoring, a substantial body of research has been devoted to ascertaining how directors can be incented to perform their responsibilities. We use social exchange theory to empirically examine how board members’ resource provision and monitoring are affected by their perceptions of the CEOs’ trustworthiness. Our findings suggest that board members’ perceptions of the CEO’s ability, benevolence, and integrity have different effects on the board members’ resource provision and monitoring. Our results further suggest that board members’ governance behaviors are moderated by the board’s performance evaluation practices. Copyright Springer Science+Business Media Dordrecht 2013

Suggested Citation

  • Esther Del Brio & Toru Yoshikawa & Catherine Connelly & Wee Tan, 2013. "The Effects of CEO Trustworthiness on Directors’ Monitoring and Resource Provision," Journal of Business Ethics, Springer, vol. 118(1), pages 155-169, November.
    • Handle: RePEc:kap:jbuset:v:118:y:2013:i:1:p:155-169
    DOI: 10.1007/s10551-012-1575-0
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