An empirical analysis of the impact of multiple directorship and Chief Executive Officer (CEO) duality on firm's performance Routray Saroj Kumar1,*, Assistant Professor, Bal Ranjan2,*, Professor 1Accounts and Finance, KIIT School of Management, KIIT University, Bhubaneswar, Odisha, India 2Department of Commerce, Utkal University, Bhubaneswar, Odisha, India (* Corresponding author) email id: *saroj@ksom.ac.in,
*ranjan_bal@yahoo.com
Abstract In this study, we examined the impact of board size, multiple directorship and board independence on firm performance. At the same time Chief Executive Officer (CEO) duality is also taken here as a dummy variable to see how the independent variables perform in the presence of separation of positions of CEO and Chairman of board. Resource dependency theory says that directors are critical resources for the companies and their network; knowledge and experience are beneficial for the companies in strategic decision-making and in linkages with the external environment. The objective of the study is to find out the impact of these features on firm performance. In our study, firm performance has been measured through market-value-to-book-value ratio as a replacement to Tobin's Q. BSE 200 index companies are taken as sample for the study. Finally, sample of 123 companies is considered over a period of 8 years from year 2007 to 2014. Panel data regression analysis is carried out on 984 observations, and the model is found to be appropriate with random effect. Top Keywords Multiple directorship, Board size, Board composition, CEO duality, Corporate governance, Firm performance, Resource dependency theory. Top |