The Leadership Attributes of the Chairman of the Board: An International Study

Board composition and its impact on board performance has been an area of significant corporate governance research activity (Dulewicz et al., 1995; Leblanc and Gillies, 2005; Charan, 2005; Nadler et al., 2006; Ehikioya, 2009). Boardroom dynamics has also been identified as both positively and adversely effecting boardroom performance and, in turn, organisational performance (Abor and Biekpe, 2007). In particular, the issue of CEO duality (i.e. the CEO performing chairman of the board functions) has been a focus of research due to CEO duality increasing agency problems and leading to poor firm performance (Maharaj, 2009). This position has found support among some academics, who propose splitting the position of CEO and chairman as a way to control the scale of the agency problem (Jensen, 1993; Coombes and Wong, 2004). Despite the fact that no clear indication has emerged concerning the impact of role separation or duality on firm performance (Moyer et al., 1996; Schmid and Zimmermann, 2008; Saibaba and Ansari, 2012; Wong, 2010), most studies emphasise the dominance of the CEO role. Drawing upon role theory, leadership theory and agency theory, Roberts and Stiles (1999) have argued that there is no clear line separating the roles and responsibilities of chairman and CEO and that their strategic relations are particularly prone to role overlap, contingent on context.