• The Journal of Asian Finance, Economics and Business
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• v.9 no.10
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• pp.85-96
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• 2022

CEO duality and its impact on firm performance represent one of the most contentious issues in both academia and business. This study, therefore, aims to examine the moderating role of CEO duality in the relationship between intellectual capital Efficiency (human, structural, relational, Capital Employed, and Innovation) and firm performance (earnings per share and Tobin's Q) among Jordanian companies. The study sample consists of services listed companies on Amman Stock Exchange. The study used panel data for the period 2014-2018 with a sample size of 230 observations. SPSS software was used to analyze the collected data. The regression results indicate a significant relationship between, IC and firm performance. When CEO Duality is incorporated into the model as a moderator, there is an increase in the R² by 7.9%. The findings from this study expand the theoretical underpinning of corporate governance research by identifying the performance implications of CEO duality within the Jordanian context. It also contributes significantly to the literature review about the current status of the practices taken in the intellectual capital components efficiency among companies listed on the Amman Stock Exchange. Findings from this study also provide contributions to the concerned policymakers such as the Ministry of Finance, Securities Commission, and Amman Stock Exchange in Jordan, to improve the current policies related to intellectual capital efficiency.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.10 no.3
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• pp.85-97
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• 2015

This study examined the effects of outside directors and CEO duality on acquisition strategies and performance of Korean firms in high-technology industry. Based on the resource dependence theory, we focused on the service and resource-dependence roles from board of directors in the process of decision-making of acquisition strategies. In addition, CEO opportunism behavior rises when CEO serves as chairperson of board and induces the negative effects on acquisition performance. Specifically, we investigated the interaction effects between outside directors ratio and CEO duality. For the period of 2004 to 2012, 246 acquisitions of Korean firms in high-technology industry were analyzed to test our intended hypotheses. Our results indicate that there exist positive relationship between outside director ratio and acquisition performance for Korean high-technology firms. Negative associations prevail between CEO duality and performance consequences of acquisitions. While outside director ratio has a positive effect on acquisition performance when there is a presence of CEO duality, negative effect prevail for outside director ratio on acquisition performance in the absence of CEO duality position to hold our interaction hypothesis. The favor of dual structure can be explained with implications referring to unity of command and strong leadership driven from CEO duality that enhances the resource dependence roles of board of directors in the context of high-technology industry acquisition behaviors rendered by Korean firms.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.243-253
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• 2021

This study aims to examine (1) the association between the chief executive officer tenure and audit quality, (2) the relationship between chief executive officer duality and audit quality, (3) the association between board independence and audit quality, (4) the relationship between board size and audit quality, and (5) the role of controlling variables (client size, leverage debt, and business complexity) in controlling these relationships. The research sample includes 325 financial reports from manufacturing firms listed in Amman Stock exchange over the 2014-2018 period. The study relationships are tested by using logistic regression. The results revealed a negative relationship, but not significant between CEO tenure and independent directors with audit quality. In addition, the results showed there is a negative effect of CEO duality on audit quality; also the results revealed that there is a statistically significant effect on the board of directors (board size) on the AQ. In general, the coefficient estimates of controlling variables show that client size and leverage debt positively affect audit quality, and on the contrary, business complexity has an insignificant positive relationship with audit quality. The summary of the study findings play an active role to external auditor opinion on business practice in towered the corporate governance system.

• Knowledge Management Research
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• v.24 no.2
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• pp.65-85
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• 2023

This paper investigates how TMT's cognitive traits affect R&D investment. Drawing on the attention-based view, we propose that TMT's future orientation and risk preference increase the level of R&D investment. As R&D activities have long-term goal of generating proprietary knowledge, it is important to understand how TMT's attention toward future and risk affect R&D investment. Also, we test the moderating effect of CEO duality on R&D investment. As the CEO plays a leadership role in the TMT, if the CEO's decision-making authority is highly concentrated, the impact of TMT on R&D may decrease. We measure CEO duality and CEO ownership stake as CEO characteristics. Based on a sample of 837 U.S. manufacturing firms, the results show that when TMT has a higher tolerance for risk and higher future orientation, R&D intensity increases. However, when CEO also serves as chairman of board and CEO has higher ownership, TMT's influence on R&D investment weakens. This implies that TMT and CEO has power dynamic that can change based on CEO power supporting status. Overall, it suggests that TMT's attention and CEO power are important factors to improve longer-term knowledge accumulation of firm.

• Asian Journal of Business Environment
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• v.6 no.1
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• pp.5-12
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• 2016

Purpose - The purpose of this study is to investigate the effect of corporate governance practices such as (board size, board composition, CEO duality and audit committee) on the performance of selected Pakistani firms. Research design, data, and methodology - This study examines corporate governance structure by using the data of 80 non-financial firms listed on Karachi Stock Exchange Pakistan during 2010-2014. Hypotheses of the study were tested by using both descriptive and inferential statistics. Result - The findings indicate that board size and audit committee is positively related to the firm performance (ROA & ROE). In contrast, board composition and CEO duality are negatively related to the firm performance (ROA & ROE). As far as controlling variables is concerned, leverage is negative, whereas firm size is positively related to all measures of performance. Conclusions - Empirical findings concluded that corporate governance practices affect the firm performance. Therefore, it is suggested that managers should understand the governance mechanisms to work more efficiently in the firm.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.341-350
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• 2021

This study tested the effect of the board of directors' (BOD) characteristics on the corporate performance of the Jordanian industrial and service companies listed on the Amman Stock Exchange (ASE) during the period 2015-2019. The characteristics of the BOD were measured through the following variables: MO = managerial ownership; CEODU = CEO duality; BI = board independence; GD = gender diversity; ND = nationality diversity; AE = advanced education; BM = board meetings; BSIZ = board size; CSIZ = corporate size; CA = corporate age. The corporate performance was measured by return on assets (ROA) and return on equity (ROE). The corporate size and corporate age were used as control variables. The study sample consisted of 85 industrial and service companies with 425 observations to identify the nature of the effect of the BOD characteristics on performance. This study applied time-series data (panel data), and the multiple linear regression method was used to achieve study objectives. Results showed a positive effect of the study variables on performance, while the corporate age and the education level (BOD members) have a negative effect on performance.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.289-295
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• 2021

This study investigates the role of corporate governance in the dividend decision of 198 non-financial companies listed on the Colombo Stock Exchange of Sri Lanka, over the period from 2009 to 2016. Four corporate governance indicators are used in this study; managerial ownership, the board size, board independence, and CEO duality. Furthermore, this study considers three control variables such as profitability, firm size, and corporate tax. This study employed the Generalized Method of Moments (GMM) model to estimate the regression models on panel data study. The major contribution of this study is exploring the insight into the effect of corporate governance factors on dividend decisions. The results of the study revealed that managerial ownership showed a significant positive impact on the dividend payout ratio. Board size showed a significant positive influence on the dividend payout ratio. Board independence negatively but significantly influenced the dividend payout ratio. CEO duality showed an insignificant negative impact on the dividend payout ratio. In the framework of these CG indicators, Sri Lankan listed firms are recommended to have dispersed ownerships, large Board size and maintain a balance of power and authority by separating the individual who is assuming the position of the CEO from the Chairperson of the Board and maintain at least two independent directors.

• Asia-Pacific Journal of Business
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• v.11 no.2
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• pp.45-60
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• 2020

Purpose - This study examines the impact of company ownership nature and of the dual role of CEO and board chair on R & D investment intensity, as well as the moderating effect of this dual role. Most previous research focused on the impact of the dual role of CEO and board chair on firm performance. Design/methodology/approach - This study uses A-share companies listed on the Shenzhen and Shanghai stock exchanges in China from 2008 to 2017. The univariate and the multivariate regression analysis were hired In order to analyze the data. Findings - The results show that there is a significant negative relationship between state-owned companies and R & D investment intensity. In addition, there is a significant positive relationship between the dual role and R & D investment intensity. The effect of state ownership on R & D investment intensity is more negative when CEO-board chair duality exists. This means that in case of state-owned companies, if CEO serves as the board chair, the propensity to invest in R&D is further reduced. Research implications or Originality - This is a pioneering study that considers the joint effect of state-owned companies and dual role on R & D investment intensity in the Chinese economy.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.2
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• pp.163-174
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• 2023

This study aims to investigate the effect of the composition of the board and ownership structure on a firm's value in Jordanian firms. Specifically, it aims to determine the effect of board size, (CEO) duality, and family, foreign, institutional, and government ownership on a firm's value. An ordinary least square regression (OLS) was employed to examine the study hypotheses in a sample of 35 Jordanian industrial firms (175 firm-year observation) for a period of five years from 2016-2020. As measured by Tobin's Q (Q ratio) and market-to-book (MB ratio) for Jordanian industrial firms listed on Amman Stock Exchange (ASE). The result found that foreign ownership, institutional ownership, and family ownership have a significant and positive effect on firm value. By contrast, government ownership does not have a significant effect on firm value. With respect to board composition (CEO duality and board size), the study results found no evidence to support the effect of board composition on firm value. The study recommended the concerned authorities with several recommendations, most notably: taking the necessary measures to ensure the continuity and growth of family businesses because of their positive impact on the value of the company and economic growth, spreading awareness about how governance protects the interests of investors.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.5
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• pp.443-453
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• 2022

This study examines the effect of board structure and audit committee structure on financial reporting timeliness among Malaysia's top 100 public listed companies. Specifically, this study examines whether board independence, CEO duality, board ownership, audit committee independence, audit committee competence, and audit committee diligence influence the financial reporting timeliness of the public listed companies. This study selects the top 100 public listed companies by market capitalization listed on the Main Market of Bursa Malaysia as the sample since the main board has more public reprimands on financial reporting timeliness compared to other boards. The content analysis on annual reports for five years from 2015 to 2019 is utilized. The results show that audit committee competence and audit committee diligence significantly affect financial reporting timeliness. In contrast, board independence, CEO duality, board ownership, and audit committee independence have insignificant relationships with financial reporting timeliness. The findings in this study are helpful for compliance analysis and strategy formation in enhancing financial reporting timeliness. This study contributes to the agency theory by providing a new perspective on how different sections of corporate governance features interact together to influence financial reporting timeliness. In addition, the findings can assist the regulators in establishing quality corporate governance.