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.