The effects of institutional investors and munificence on board chair orientations

Ying Schwarte () and Ping He ()
Additional contact information
Ying Schwarte: Sorrell College of Business, Troy University
Ping He: Sorrell College of Business, Troy University

Journal of Management & Governance, 2024, vol. 28, issue 4, No 4, 1049-1077

Abstract: Abstract In today’s corporate landscape, the separation of the board chair and CEO roles is increasingly prevalent among public firms. Understanding this leadership dynamic, particularly the board chair-CEO working relationship, is critical. This study delves into the influence of divergent behaviors among institutional investors on the board chair-CEO interaction and explores how environmental munificence moderates these effects. We ascertain that high levels of dedicated institutional investor ownership tend to prompt board chairs to exhibit both control and collaboration orientations with CEOs. Conversely, in instances of elevated transient institutional investor ownership, board chairs are less inclined toward collaboration with CEOs. Of notable interest is our investigation into how environmental munificence shapes these relationships. We discover that the abundance or scarcity of resources in the environment can significantly recalibrate the impact of institutional investor ownership structures on board chair orientations toward CEOs. This study not only contributes to the broader realm of corporate governance research but also offers practical insights for practitioners navigating the intricate dynamics between institutional investors, board chairs, and CEOs. Our findings underline the nuanced interplay between investor behaviors, leadership orientations, and environmental contexts, enriching the understanding of effective corporate governance strategies.

Keywords: Institutional investor; Corporate governance; Control orientation; Collaboration orientation; Munificence (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10997-024-09698-9 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jmgtgv:v:28:y:2024:i:4:d:10.1007_s10997-024-09698-9

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/10997/PS2

DOI: 10.1007/s10997-024-09698-9

Access Statistics for this article

Journal of Management & Governance is currently edited by Lino Cinquini

More articles in Journal of Management & Governance from Springer, Accademia Italiana di Economia Aziendale (AIDEA) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().