Open AccessBoard leadership structure and firm performance: An examination of resource dependence role
Author(s) -
Afzalur Rashid
Publication year - 2011
Publication title -
corporate board: role, duties and composition
Language(s) - English
Resource type - Journals
eISSN - 2312-2722
pISSN - 1810-8601
DOI - 10.22495/cbv7i1art1
Subject(s) - stewardship theory , resource dependence theory , corporate governance , principal–agent problem , business , context (archaeology) , duality (order theory) , resource (disambiguation) , variables , moderation , accounting , psychology , management , economics , social psychology , mathematics , finance , paleontology , computer network , statistics , computer science , biology , discrete mathematics
This study examines if the CEO duality influence the firm economic performance in Bangladesh and the moderating effects of board composition in the form of outside independent directors. While doing so, it examines the relationship between CEO duality and firm performance during the pre appointment of outside independent directors and post appointment of outside independent directors (the role of other corporate governance mechanism as moderating variable). The finding is that there is there is a negative (non-significant) relationship between CEO duality and firm performance before appointment of outside independent directors in theboard. However, independent leadership structure and firm performance is found to be positively related following the acquisition of resource (outside independent directors in the board) supporting the ’resource dependence theory’. The findings of this study partially support the ’agency theory’ and ’resource dependence theory’ but do not support the stewardship theory.This study contributes to the literature on CEO duality in the context of less a developed country.