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

Esther Del Brio (), Toru Yoshikawa (), Catherine Connelly () and Wee Tan ()

Journal of Business Ethics, 2013, vol. 118, issue 1, 155-169

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

Keywords: Directors of the board; Trustworthiness; Monitoring; Resource provision; Board evaluation (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s10551-012-1575-0

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