The contextual factors behind CEO duality: an empirical analysis of Brazil's case

Authors

  • Elisa Maria Moser
  • Paulo Vitor Jordão da Gama Silva
  • Fernando Nascimento Oliveira
  • Michael Espindola Araki

Keywords:

CEO Duality. Board of Directors. Corporate Governance. Stewardship Theory.

Abstract

Our econometric analyses used logistic regression to test the relation between CEO duality, a dummy variable equal to one if there is duality and 0 otherwise with independent variables regarding firm characteristics (firm age, size and economic sector), corporate governance (ownership structure, CEO age and governance level), and firm economic and financial performance. Our sample consisted of a balanced panel of 160 Brazilian publicly traded companies listed on B3 S.A., with data from 2010 to 2016. Our results indicate that CEO duality was positively related with higher CEO age and superior financial performance. Conversely, CEO duality was negatively related with firm size, belonging to special listing segments, belonging to regulated sectors, board size and foreign capital ownership. Our results are robust to different specifications and different econometric techniques.

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Author Biographies

Elisa Maria Moser

Master in Business Administration - Instituto Brasileiro de Mercado de Capitais, IBMEC-RJ. PhD Student in Strategy at Pontifícia Universidade Católica do Rio de Janeiro, PUCRJ/RJ, Brazil, E-mail: [email protected]

Paulo Vitor Jordão da Gama Silva

Master in Finance - Pontifícia Universidade Católica do Rio de Janeiro, PUCRJ. PhD Student in Finance at Pontifícia Universidade Católica do Rio de Janeiro, PUCRJ/RJ, Brazil, E-mail: [email protected]

Fernando Nascimento Oliveira

Doctor in Economics - Pontifícia Universidade Católica do Rio de Janeiro, PUCRJ. Professor at Instituto Brasileiro de Mercado de Capitais, IBMEC-RJ/RJ Brazil – E-mail: [email protected]

Michael Espindola Araki

PhD student in Finance and Master in Leadership Studies - Pontifícia Universidade Católica do Rio de Janeiro, PUCRJ. Adjunct Professor at Universidade Federal Fluminense UFF/RJ, Brazil, E-mail: [email protected]

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Published

2019-04-27

How to Cite

Moser, E. M., Silva, P. V. J. da G., Oliveira, F. N., & Araki, M. E. (2019). The contextual factors behind CEO duality: an empirical analysis of Brazil’s case. REBRAE, 12(2), 76–103. Retrieved from https://periodicos.pucpr.br/REBRAE/article/view/25277

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