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Article
Publication date: 23 July 2019

Phillip T. Lamoreaux, Lubomir P. Litov and Landon M. Mauler

We document the emergence of the Lead Independent Director (LID) board role in a sample of U.S. firms from 1999–2015. We find that firms that adopt an LID board role are…

Abstract

We document the emergence of the Lead Independent Director (LID) board role in a sample of U.S. firms from 1999–2015. We find that firms that adopt an LID board role are larger and have more independent boards, higher institutional investor holdings, and an NYSE listing. Firms with greater anticipated benefits from monitoring also adopt an LID role, e.g., firms with dual CEO-Chairman, with more takeover defense mechanisms, and with higher cash holdings. Using an event study methodology, we find that investors respond positively to the adoption of an LID board role. Lastly, using instrumental variables to address endogeneity in the LID board role, we find that firms with an LID are more likely to terminate poorly performing CEOs. Taken as a whole, these results suggest that the LID board role enhances firm value and improves the quality of corporate governance.

Details

Journal of Accounting Literature, vol. 43 no. 1
Type: Research Article
ISSN: 0737-4607

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Article
Publication date: 5 October 2015

Thoranna Jonsdottir, Val Singh, Siri Terjesen and Susan Vinnicombe

The purpose of this paper is to examine how directors’ roles and social identities are shaped by gender and board life stage, using pre- and post-crisis Iceland as the…

Abstract

Purpose

The purpose of this paper is to examine how directors’ roles and social identities are shaped by gender and board life stage, using pre- and post-crisis Iceland as the setting. Recent theoretical work suggests the importance of directors’ monitoring and resource provision roles at certain board life stages; however, there is limited empirical evidence of directors’ identification with these roles as well as social role identification as a member of the board.

Design/methodology/approach

The authors contribute empirical evidence from interviews with 23 corporate directors in Iceland on individual identification with the director role of monitoring and resource provision, relational identification with the CEO role and social identification as a member of the board.

Findings

Prior to the crisis, male directors identified more strongly with resource provision and with their social roles and less strongly with monitoring roles. Compared to their male counterparts, pre-crisis female directors identified more strongly with monitoring and did not identify with their social roles. After the crisis, mature boards’ male director role identities were little changed; male directors continued to identify with resource provision and social identification, rather than monitoring, roles. Compared to pre-crisis, post-crisis female directors described greater identity with their resource provision roles and reported that male directors resented their attempts to fulfill their monitoring roles. In post-crisis, newly formed diverse boards, male and female directors reported very similar role identities which reflected balanced monitoring and resource provision roles, for example providing the board with ethical individual identities and unblemished reputations. The findings of this paper indicate that board composition and life cycle stage might have more impact on director identity than a pre- or post-crisis setting. These findings suggest implications for theory, practice and future research.

Originality/value

This paper provides further empirical evidence of the roles male and female directors identify with on corporate boards. Its originality lies in the context of the board work in terms of newly formed and mature boards, before and after the financial crisis, with differing gender composition (male-dominated and gender-balanced boards).

Details

Gender in Management: An International Journal, vol. 30 no. 7
Type: Research Article
ISSN: 1754-2413

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Article
Publication date: 13 February 2007

Nada K. Kakabadse and Andrew P. Kakabadse

This paper aims to undertake a study of national configurational demographics in order to determine the spread of understanding of the chairman's role, performance and…

2199

Abstract

Purpose

This paper aims to undertake a study of national configurational demographics in order to determine the spread of understanding of the chairman's role, performance and contribution.

Design/methodology/approach

Qualitative methodology, exploratory in nature through in‐depth interviews and workshop discussion involving 103 UK, US and Australian participants, was undertaken.

Findings

The role of chairman is considered as having a distinct effect on board dynamics, role and contribution and the monitoring and support of management. Nine demographic factors are identified as affecting the manner in which the role of chairman is exercised in the UK, USA and Australia.

Research limitations/implications

The findings of this qualitative exploratory study need to be integrated into a quantitative empirical survey in order to ascertain the validity of the results to date.

Practical implications

The two key conclusions highlight the requirement for governance due diligence, examining the financial and competitive strength of the organisation as well as uncovering contextual sensitivities.

Originality/value

Insufficient attention has been given to the role of chairman. The study offers additional insight on how demographic factors influence the shaping and determination of the role of chairman. This paper should be of interest to practitioners, consultants, line managers, board members, chairmen, management academics and business studies students.

Details

Journal of Management Development, vol. 26 no. 2
Type: Research Article
ISSN: 0262-1711

Keywords

Article
Publication date: 20 December 2017

Filipe Morais, Andrew Kakabadse and Nada Kakabadse

The purpose of this paper is to use Stewart’s model of role as a lense from which to explore chairperson and CEO role dynamics in addressing strategic paradox and tension.

Abstract

Purpose

The purpose of this paper is to use Stewart’s model of role as a lense from which to explore chairperson and CEO role dynamics in addressing strategic paradox and tension.

Design/methodology/approach

The paper draws on 29 semi-structured, in-depth interviews with chairpersons and CEOs of UK-listed companies. Interview data are subjected to role analysis using Stewart’s (1982) Demands-Constraints-Choice (DCC) model of role.

Findings

Findings indicate that relationship levels of trust, communication and chairperson time enable strategic tensions to be raised and confronted in the relationship reducing defensiveness. Two distinct approaches to handle strategic tensions are found. The CEO-led approach predominates and rests on less flexible role boundaries, requiring the chairperson to proactively identify strategic tensions and perform an advisory/mentoring role. The shared leadership approach, less prevalent, rests on highly flexible role boundaries where the skills and experience of each incumbent become more relevant, enabling the separation of efforts and integration of strategic tensions in the relationship in a “dynamic complementarity of function”.

Research limitations/implications

The paper only applies to the UK context and is limited to contexts where CEO and chairperson roles are separate. The paper draws on individual perceptions of chairperson and CEOs (i.e. not pairs).

Practical implications

The paper provides insights to practicing CEOs and chairperson on two distinct ways of working through strategic paradox and tensions.

Originality/value

The paper adds to the scarce literature at chairperson and CEO roles and strategic paradox and tension.

Details

Corporate Governance: The International Journal of Business in Society, vol. 18 no. 1
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 6 February 2020

Thomas Martin Key and Astrid Lei Keel

This paper aims to explore how chief executive officers (CEOs) and C-suite marketing executives (chief marketing officers [CMOs], chief customer officers [CCOs], chief…

649

Abstract

Purpose

This paper aims to explore how chief executive officers (CEOs) and C-suite marketing executives (chief marketing officers [CMOs], chief customer officers [CCOs], chief branding officers [CBOs], etc.) talk about marketing concepts to better understand how marketers can more effectively articulate their value and increase their strategic influence within the firm.

Design/methodology/approach

Artificial intelligence-enabled computerized text analysis was used to identify and weight keywords from 266 CEO and C-suite marketing executive interviews. Custom marketing concept dictionaries were used to gauge overall marketing focus.

Findings

The analysis revealed opportunities for C-suite marketers to align specific marketing concepts with that of CEOs for increased strategic influence. Comparisons between C-suite marketing roles showed that CMOs are more focused on marketing strategy than specialized C-suite marketing positions, such as CCO and CBO. This points to a potential decrease in strategic impact for marketing executives dependent on the specialization of their position.

Research limitations/implications

Using IBM Watson’s black-box artificial intelligence may limit the ability to replicate results from the content analysis; however, the results identify important ways that marketing executives can use to increase their ability to articulate their value within the firm.

Practical implications

C-suite marketing executives who want to increase the strategic alignment of their role with their firm must pay close attention to the marketing concepts they talk about, and how those align with their CEO’s marketing knowledge. The creation of specialized C-suite marketing roles may unintentionally limit the strategic thinking and firm-level impact of marketers.

Originality/value

This paper represents the first use of artificial intelligence-enabled computerized text analysis to explore and compare executive speech acts to help increase marketing’s influence in the firm. It is also the first to explore differences in marketing concept use between C-suite marketing roles.

Details

European Journal of Marketing, vol. 54 no. 3
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 April 2003

Roberto Pascual and Martí Larraza‐Kintana

The control role of the Board of Directors is aimed at monitoring the decisions and actions undertaken by managers in order to protect stockholders’ interests…

Abstract

The control role of the Board of Directors is aimed at monitoring the decisions and actions undertaken by managers in order to protect stockholders’ interests. Considerable theoretical and empirical research has analyzed whether directors’ behavior is consistent with their fiduciary responsibility, but this research has reported inconsistent findings. This paper offers a comprehensive review of both theoretical and empirical literature on the control role of the board and suggests several guidelines for future research.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 1 no. 1
Type: Research Article
ISSN: 1536-5433

Keywords

Article
Publication date: 7 March 2018

Mohammad Jizi and Rabih Nehme

This paper aims to examine whether CEO/chair dual roles influence board monitoring-audit fees nexus. The impact of corporate governance on audit fees literature is lacking…

1804

Abstract

Purpose

This paper aims to examine whether CEO/chair dual roles influence board monitoring-audit fees nexus. The impact of corporate governance on audit fees literature is lacking in the banking sector, which is subject to different regulations and reporting requirements to other sectors. The level and quality of external audit services are important not only to shareholders and customers but also for regulators’ reputations and public confidence.

Design/methodology/approach

Examining a sample of the US national commercial banks, this study fills the gap by empirically examining whether the attributes of internal corporate governance mechanisms, proxied by boards of directors and audit committee characteristics, are related to audit fees. We introduce two interaction variables to understand whether chief executive officer (CEO)/chair dual roles influence the relationships between board independence and audit fees on the one hand and between the audit committee and audit fees on the other hand.

Findings

We find that audit fees are positively associated with board independence, board size, CEO/chair dual role and audit committee financial experts. The results of the interaction variables indicate that boards with higher independence and more effective audit committees tend to demand higher audit quality, and consequently, pay higher audit fees to protect shareholders’ interests from potential power abuse by CEOs who also chair boards.

Originality/value

This study contributes to the literature by providing extensive understanding of the influence on audit fees of the independence of the board of directors and the effectiveness of the audit committees. The authors first examine the impact of each individual governance variable separately and then introduce two interaction variables. This study provides policymakers with insights into the existing relationships between audit fees and the banking sector governance structure.

Details

Managerial Auditing Journal, vol. 33 no. 2
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 13 May 2022

Mahfuja Malik and Eunsup Daniel Shim

The purpose of this study is to examine the direct association between firms’ corporate social responsibility (CSR) scores, CSR disclosures and executive compensation…

Abstract

Purpose

The purpose of this study is to examine the direct association between firms’ corporate social responsibility (CSR) scores, CSR disclosures and executive compensation. This study further investigates the moderating role of CSR in the association between executive compensation and firms’ stock market and accounting performances.

Design/methodology/approach

This study collects CEO compensation information from the Execucomp database and CSR performance information from the MSCI ESG database. The final sample consists of 4,193 firm-year observations for 1,318 US public firms for the period 2009–2013. This study uses lagged regression analysis to test the direct and moderating roles of CSR in executive compensation.

Findings

Regarding the direct role of CSR, this study finds that CEO compensation is positively related to CSR performance but not to firms’ issuance of CSR reports. This study also finds a positive moderating role of CSR in the relationship between CEO compensation and firms’ stock performance. However, the authors do not identify any role for CSR in the relationship between CEO compensation and accounting performance. The results also show a negative association of CSR in the relationship between CEO compensation and firm size.

Originality/value

This study fills a gap in the literature by providing empirical evidence on the direct association between CSR and CEO compensation and how the association between CEO compensation and firm performance is moderated by CSR scores. The novel findings of this study will benefit managers, boards of directors, shareholders and other stakeholders, including regulators and policymakers.

Details

Pacific Accounting Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 5 April 2013

Patricia B. Abels and Joseph T. Martelli

This paper aims to concentrate on the prevailing agency theory along with its complementary theory of stewardship as foundations for the authors' research. Recent economic

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Abstract

Purpose

This paper aims to concentrate on the prevailing agency theory along with its complementary theory of stewardship as foundations for the authors' research. Recent economic turmoil within the USA has resulted in stakeholders demanding change within governance policies of corporations. One such adjustment has been the separation of the CEO and Chairman positions within organizations. The authors' study seeks to uncover the extent to which duality CEO relationships exist in large corporations within the USA. In light of the push towards splitting the dual roles, the authors further investigated new CEOs recently appointed into the CEO position.

Design/methodology/approach

Companies selected for this study were the top 500 revenue‐producing companies in the USA as published by Fortune magazine in 2008. For comparison purposes, the authors' database included newly appointed CEOs coming on board with the original 2008 companies that had remained on the listing for both years as published by Fortune in 2010. The authors' 2008 database included 500 companies and their 2010 database included 86 companies. The North American Industry Classification System (NAICS) was the product classification used in order to establish the principal industry sector for companies under analysis.

Findings

The authors' 2008 analysis reveals that 303 CEOs hold a combination title of CEO and Chairman. The most frequent title combination is CEO and Chairman, with 156 executives holding this combined title. The authors' 2010 analysis reveals that 33 new CEOs hold a combination title of CEO and Chairman. The most frequent title combination is CEO and President with 43 executives holding the title. The authors' analysis of retired CEOs reveals that 15 retired CEOs continue serving in the capacity of Chairman of the Board of Directors.

Research limitations/implications

Using the top 500 companies in the USA, based upon sales revenue, did limit the study to large corporations within the USA.

Originality/value

The agency theory does provide an explanation of the duality movement witnessed in corporations. The practice of splitting duality roles of CEO and Chairman within public corporations appears to be becoming a reality within the USA, whether on a voluntary or a mandatory basis in order to enhance corporate independence and transparency.

Details

Corporate Governance: The international journal of business in society, vol. 13 no. 2
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 12 August 2021

Maria Rita Blanco and Mariela N. Golik

The career is a space where family and work lives amalgamate. The role of work for the individual, and the meaning of work within the culture, will determine the relevance…

Abstract

Purpose

The career is a space where family and work lives amalgamate. The role of work for the individual, and the meaning of work within the culture, will determine the relevance of family. This study investigates CEOs' perception about conjugal family influence on career decisions, and it examines family factors.

Design/methodology/approach

Through a qualitative study, 22 Latin American CEOs who work for multinational firms were interviewed in a semi-structured way.

Findings

Not all career decisions were influenced by conjugal family. CEOs varied in the extent to which they considered their families when reflecting on their career decisions. Expatriation, joining or quitting an organization and change of area of work were found as those decisions perceived to be influenced by conjugal family. Family support, family structure and family demands and responsibilities were identified as the family factors involved. In spite of the role salience, family factors influenced some of CEOs' career decisions, in part, due to the cultural characteristics of the Latin American environment. The instrumental support of the extended family, as part of collectivist societies, was also evidenced.

Practical implications

A better understanding of the family influenced decisions and family factors involved may enhance individual career decision-making as well as organizational career management processes and public initiatives.

Originality/value

This study contributes to family and career literature, being the first one to explore the conjugal family influence upon CEOs' career decisions.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

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