A Contemporary Study of the Relationship between CEO Duality and Organizational Performance - Dissertation Example

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A Contemporary Study of the Relationship between CEO Duality and Organizational Performance

This means that the companies which have unity of command, i.e. the same individual is charged with the responsibility of CEO and chairman of the board, perform financially at a lower level. However, these findings and conclusions are representative of the companies operating in Kuwait only, and keeping in view the prominence of family owned and managed companies in Kuwait, the trend of duality is on the larger side. In other countries, this trend may change or there may be no duality at all, and therefore the projection of these findings and conclusion is invalid for such regions.Board duality is a situation where one individual holds both positions of Chairperson and CEO (Kwok 1998). This is a phenomenon that has been commonly observed in countries with weaker regulatory and accounting frameworks. Various studies have been conducted throughout the world regarding differences in duality within boards of directors and the impact on company performance. Company shareholders have assisted with these studies in order to improve understanding and the relationship between board duality and company performance. Duality in board structure is relevant to corporate governance, and it includes a wide range of disciplines, such as international affairs, economic laws and political science. ...Show more

Summary

Researchers have devoted a lot of attention to CEO duality and firm performance. However, for Kuwaiti companies, this area has yet to be explored. The present study explores the relationship between CEO duality and firm performance in the Kuwaiti context…
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