CGRI Research Spotlight Series. Corporate Governance Research Initiative (CGRI), November
This Research Spotlight provides a summary of the academic literature on whether companies with an independent chairman of the board exhibit better governance quality than companies with a dual chairman/CEO. It reviews the evidence of:
- The relation between independent chair and market value
- Shareholder reaction to a decision to separate chairman and CEO roles
- Separation during the succession process
- Separation to improve oversight
- The impact of separation on performance
This Research Spotlight expands upon issues introduced in the Quick Guide Board of Directors: Structure and Consequences.