STUDY ON CORRELATION BETWEEN CEO DUALITY AND CORPORATE PERFORMANCE OF COMPANIES LISTED ON THE BUCHAREST STOCK EXCHANGE

Raluca Georgiana Moscu ()
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Raluca Georgiana Moscu: The Bucharest University of Economic Studies, PhD Student

Journal of Social and Economic Statistics, 2015, vol. 4, issue 1, 47-53

Abstract: In Romania it is not recommended the duality of positions, the term "recommended" not being strictly kept, so there is a 33% case of companies listed on BSE that do not comply with codes of governance on the plurality of positions and the Chairman assumes the responsibility for the General Manager (CEO) of the company. In terms of CEO - Chairman of the Board of Directors duality, the professional theory comes with two different approaches, showing that in terms of agent theory duality negatively affects the corporate performance and the stewardship theory says the opposite. Using data of 55 listed Romanian firms from the Bucharest Stock Exchange in 2010-2013 we analyse the relationship between CEO duality and performance (Return on Assets) or between CEO duality and some variables which describe some characteristics of corporate governance (concentrated ownership structure, presence of general manager as a shareholder, presence of institutional investors, size of the Board, presence of a woman in the position of Chairman, age of Chairman or presence of one tier governance system). Empirical findings indicate that CEO duality is positively related with Return on Assets (ROA) which supports stewardship theory. The variable that shows the duality is positively correlated with concentrated ownership structure, the variable that shows the general manager is also a shareholder, size of the Board and the variable that shows position of Chairman is held by a woman, age of Chairman and negatively with the variable that show presence of one tier governance system.

Keywords: Corporate governance; CEO duality; Board of Directors; Corporate performance (search for similar items in EconPapers)
JEL-codes: C10 G34 G38 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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