The relationship between CEO duality & firm performance: A study of listed firm on house
Abstract
Corporate governance recently receives a great deal of concern in today’s
academics, particularly in emerging markets. Although there is a myriad of insights and
studies relating to this topic, less has been done in Vietnam. There is one sphere of
corporate governance playing a central role over the last decades, namely CEO duality. It
is a situation in which a CEO was simultaneously assigned to be a member within the
Board of Directors. It is questioned by academics that whether this structure has
significant impacts on a firm’s performance. Nevertheless, there is no clear-cut
conclusion to this problem.
Do CEO duality and firm performance have an unobserved association among
non-financial listed firms on Ho Chi Minh Stock Exchange? This is the gist of the whole
paper. With respect to the data compiled in the period of 2008 – 2012 among 120 firms,
the results suggest that CEO duality significantly has a positive relationship to a firm’s
performance in case the performance was measured by Tobin’s Q ratio; meanwhile, once
ROA and ROE were employed as measurements, these two variables appears to have a
statistically insignificant relationship.