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CEO duality and companies’ performance: a case of Malaysian Companies / Roshima Said…[et al.]

The proponents of the agency theory and the stewardship theory had a different view on what constitute a good governance practice in the public firms. The agency theory believed that the separation of chief executive officer (CEO) and board chair roles is necessary to reduce the managers’ opportunis...

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Main Authors: Said, Roshima, Omar, Ropidah, Awang, Norasmila, Yaacob, Zuraini, Ismail, Jurina
Format: Research Reports
Language:English
Published: Research Management Institude, Universiti Teknologi MARA 2005
Subjects:
Corporations
Corporate organization. Corporate governance
Online Access:http://ir.uitm.edu.my/id/eprint/26606/1/LP_ROSHIMA%20SAID%20RMI%20K%2005_5.pdf
http://ir.uitm.edu.my/id/eprint/26606/
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spelling my.uitm.ir.266062019-11-28T09:19:33Z http://ir.uitm.edu.my/id/eprint/26606/ CEO duality and companies’ performance: a case of Malaysian Companies / Roshima Said…[et al.] Said, Roshima Omar, Ropidah Awang, Norasmila Yaacob, Zuraini Ismail, Jurina Corporations Corporate organization. Corporate governance The proponents of the agency theory and the stewardship theory had a different view on what constitute a good governance practice in the public firms. The agency theory believed that the separation of chief executive officer (CEO) and board chair roles is necessary to reduce the managers’ opportunistic behaviors which could reduce the shareholders’ wealth. In contrast, the stewardship theory believed that CEO duality promotes flexibility and reduces conflict between the board of directors and management, which in turn lead them to perform effectively. The objective of this study is to examine the relationship between CEO duality and companies’ performance. The researchers want to investigate whether the performance of the company is determined by their duality or independent leadership status. The findings of the study show that the independent leadership companies showed a better performance in term of the proportion of return on asset to leverage (ROE) and profit after tax and interest to sales (profit margin) as compared to the CEO duality companies. The difference is however, not statistically significant. Therefore, we can conclude that the separation of the roles of CEO and chairperson does not necessarily contribute to a better performance and that the duality issue is not a contributing factor in determining the performance of a company. Research Management Institude, Universiti Teknologi MARA 2005-05 Research Reports NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/26606/1/LP_ROSHIMA%20SAID%20RMI%20K%2005_5.pdf Said, Roshima and Omar, Ropidah and Awang, Norasmila and Yaacob, Zuraini and Ismail, Jurina (2005) CEO duality and companies’ performance: a case of Malaysian Companies / Roshima Said…[et al.]. [Research Reports] (Unpublished)
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic Corporations
Corporate organization. Corporate governance
spellingShingle Corporations
Corporate organization. Corporate governance
Said, Roshima
Omar, Ropidah
Awang, Norasmila
Yaacob, Zuraini
Ismail, Jurina
CEO duality and companies’ performance: a case of Malaysian Companies / Roshima Said…[et al.]
description The proponents of the agency theory and the stewardship theory had a different view on what constitute a good governance practice in the public firms. The agency theory believed that the separation of chief executive officer (CEO) and board chair roles is necessary to reduce the managers’ opportunistic behaviors which could reduce the shareholders’ wealth. In contrast, the stewardship theory believed that CEO duality promotes flexibility and reduces conflict between the board of directors and management, which in turn lead them to perform effectively. The objective of this study is to examine the relationship between CEO duality and companies’ performance. The researchers want to investigate whether the performance of the company is determined by their duality or independent leadership status. The findings of the study show that the independent leadership companies showed a better performance in term of the proportion of return on asset to leverage (ROE) and profit after tax and interest to sales (profit margin) as compared to the CEO duality companies. The difference is however, not statistically significant. Therefore, we can conclude that the separation of the roles of CEO and chairperson does not necessarily contribute to a better performance and that the duality issue is not a contributing factor in determining the performance of a company.
format Research Reports
author Said, Roshima
Omar, Ropidah
Awang, Norasmila
Yaacob, Zuraini
Ismail, Jurina
author_facet Said, Roshima
Omar, Ropidah
Awang, Norasmila
Yaacob, Zuraini
Ismail, Jurina
author_sort Said, Roshima
title CEO duality and companies’ performance: a case of Malaysian Companies / Roshima Said…[et al.]
title_short CEO duality and companies’ performance: a case of Malaysian Companies / Roshima Said…[et al.]
title_full CEO duality and companies’ performance: a case of Malaysian Companies / Roshima Said…[et al.]
title_fullStr CEO duality and companies’ performance: a case of Malaysian Companies / Roshima Said…[et al.]
title_full_unstemmed CEO duality and companies’ performance: a case of Malaysian Companies / Roshima Said…[et al.]
title_sort ceo duality and companies’ performance: a case of malaysian companies / roshima said…[et al.]
publisher Research Management Institude, Universiti Teknologi MARA
publishDate 2005
url http://ir.uitm.edu.my/id/eprint/26606/1/LP_ROSHIMA%20SAID%20RMI%20K%2005_5.pdf
http://ir.uitm.edu.my/id/eprint/26606/
_version_ 1685650157200211968
score 13.211869

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