FACC/UFRJ, XI Congresso Nacional de Administração e Contabilidade - AdCont 2020

Tamanho da fonte: 
CEO Non-Duality, Market Reaction, and Corporate Performance
Rinaldo de Sousa Guimarães, Giuseppe Trevisan

Última alteração: 2020-10-29


In this paper, we investigate the effect of CEO non-duality structure on performance of publicly listed companies. We exploit a quasi-experiment promoted by a regulatory change in the Brazilian Stock Exchange that abolished the accumulation of CEO and Chair of Board titles from the same person. Using a dynamic differences-in-differences design, we find a long-standing positive effect on firm value. On the other hand, stock prices and profitability do not respond to the new leadership structure. Our findings suggest that CEO non-duality enhances firm performance through improvements on decision-making processes to maximize shareholders’ wealth instead of practices directly affecting firms’ operations.

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