The Impact of CEO as Board Chairperson on Corporate Performance: Evidence vs. Rhetoric

Rechner, Paula L.; Dalton, Dan R.
May 1989
Academy of Management Executive (08963789);May1989, Vol. 3 Issue 2, p141
Academic Journal
This article discusses the impact of chief executive officers (CEOs) as board chairperson on corporate performance. Many have criticized the dual role of CEO as board chairperson, believing it presents a conflict of interests. A study is referenced which consists of companies from the Fortune 500 group which provide multiple-year comparisons of shareholder returns for companies with CEO duality versus those with independent positions. The author notes that stockholder return typically comprises risk-adjusted, abnormal returns on common stocks, allowing experts to take into account the effects of both differential risk levels and general market factors on security returns.


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