One Man Two Hats: What's All the Commotion!
City University of New York, CUNY Baruch College, Zicklin School of Business
Laura Galguera Garcia
affiliation not provided to SSRN
Jos Van Bommel
Universite du Luxembourg - Luxembourg School of Finance
Financial Review, Vol. 44, Issue 2, pp. 179-212, May 2009
We examine performance in publicly listed U.K. companies over a period that encompasses the issuance of the Cadbury Committee's Code of Best Practice, which calls for the abolition of the combined CEO/COB position. We find that companies splitting the combined CEO/COB position to conform to the Code's requirement did not exhibit any absolute or relative improvement in performance when compared to various peer-group benchmarks. We do not necessarily scoff at mandated board structures, but the evidence suggests that this particular legislature coerced the abandonment of the combined CEO/COB position and appears to be wide of the mark.
Number of Pages in PDF File: 34Accepted Paper Series
Date posted: June 16, 2009
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