CEO DUALITY, BOARD INDEPENDENCE AND FIRM FINANCIAL PERFORMANCE: EVIDENCE FROM AN ASIAN EMERGING MARKET
CEO DUALITY, BOARD INDEPENDENCE AND FIRM FINANCIAL PERFORMANCE
Keywords:
Board Independence, CEO duality, Corporate Governance, Emerging MarketsAbstract
This study explores the relationship between CEO duality, board independence, and firm financial performance of listed companies in Pakistan, an Asian emerging market with a unique institutional background, family-controlled business, larger board independence, and CEO duality in companies listed on the Pakistan Stock Exchange (PSX). We used a sample of 146 listed manufacturing companies for the period–2003-2012. The dynamic generalised method (GMM) is employed to estimate and address endogeneity issues. The study finds an insignificant association between CEO duality and firm financial performance in the absence of board independence. However, we observed a significant positive association between CEO duality and financial performance in the presence of large board independence. This study concludes that the association between CEO duality and firm financial performance is contingent on the being of outside directors on the board. This study extends the body of existing literature on CEO duality and board independence financial performance with reference to an emerging Asian market, more specifically Pakistan. Based on the results, it suggests that policymakers should pay particular attention to the quality of corporate governance, specifically board structure, while predicting financial performance.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Shahab Ud Din, Wajid Khan, Faiza Saleem, Muhammad Yar Khan
This work is licensed under a Creative Commons Attribution 4.0 International License.
Submission of an original manuscript to the Journal will be taken to mean that it represents original work not previously published, that it is not being considered elsewhere for publication. And if accepted for publication, it will be published in print and online and it will not be published elsewhere.
The journal main policy reflects in its stance that the publication of scholarly research is exclusively meant to disseminate knowledge and not-for-purposes.
Copyright Statment
Sarhad Journal of Management Sciences is published by Sarhad University of Science and Information Technology Peshawar. This copyright statement entails that all contents (including text, tables, graphs, images, or any materials that is part and parcel of a research article submitted to the journal) belong to/ property of the person who owned it prior to submission this journal. Publication of the submitted article will not affect the ownership of copyright of the subject materials. SJMS and its users benefit from a general licence over all content submitted under a Creative Commons CC-BY licence over all content. However, content which is not part of the submitted article, is the property of SJMS. In a nutshell, the combination of all content on the SJMS website, the look and feel of the website, is the property of Sarhad University of Science and Information Technology Peshawar.
As an author or contributor, you grant permission to others to reproduce your articles, including any graphics and third-party materials supplied by you, in accordance with the SJMS Terms and Conditions. The licence granted to third parties over all contents of each article, including third-party elements, is a Creative Commons Attribution ("CC BY") licence. The current version is CC-BY, version 4.0 (http://creativecommons.org/licenses/by/4.0/), and the licence will automatically be updated as and when updated by the Creative Commons organisation.
You may include a requirement to reproduce copyright notices but you may not restrict the right to reproduce the entire article, including third-party graphics. This means that you must obtain any necessary third-party consents and permissions to reproduce third-party materials in your articles submitted to SJMS.
Copyright Statement updated September 13, 2022.
