Research Notes and Communication
CEO duality and organizational performance: A longitudinal analysis
Article first published online: 8 NOV 2006
Copyright © 1991 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 12, Issue 2, pages 155–160, February 1991
How to Cite
Rechner, P. L. and Dalton, D. R. (1991), CEO duality and organizational performance: A longitudinal analysis. Strat. Mgmt. J., 12: 155–160. doi: 10.1002/smj.4250120206
- Issue published online: 8 NOV 2006
- Article first published online: 8 NOV 2006
- Manuscript Revised: 24 SEP 1990
- Manuscript Received: 30 JUL 1987
All public corporations must make a choice regarding board leadership structure. Advocates of more effective corporate governance argue for independent board leadership; yet many firms choose instead to allow the CEO to serve as board chairperson (CEO duality). This study examines the differential financial implications of these choices for 141 corporations over a 6-year time period. Results indicate significant differences in performance between the two groups along a number of performance measures; more specifically, firms opting for independent leadership consistently outperformed those relying upon CEO duality.