Separating the Titles of CEO and Chairman: A Model of Leadership and Authority
نویسنده
چکیده
When a CEO holds the title of Chairman of the Board, the board has the formal authority, but the CEO often holds the leadership. This paper shows that if the board is not independent enough to discipline a CEO, it is optimal for the board to take leadership by separating the titles. However, the board (or shareholders) is better-off if it can increase its independence without separating the titles. These results do not change even if the separation of the titles leads to no-leadership, and explain why most US firms do not separate the titles despite the concerns for potential CEO frauds. JEL Code: G30, D80, D70
منابع مشابه
The Relationship between Corporate Governance Factors and Accounting Conservatism (Based on Basu\'s Model Evaluation)
The purpose of this study is to investigate the effect of corporate governance, the ownership percentage of major and institutional shareholders, auditor change, audit committee independence, and information asymmetry on accounting conservatism. Basu's model (1997) has been used to evaluate the relationship among variables. The present study is a post-event study, and the research sample includ...
متن کاملA Theoretical Framework for Several Antecedents of Shared Leadership in Corporate Board Contexts
Due to the gap in understanding board leadership and specifically, board shared leadership, this article aims at proposing some antecedents of the emergence of board shared leadership. This article incorporates three bodies of literature: Team effectiveness, team leadership, and board management. Based on integrating several theoretical perspectives, nine propositions are developed in relation ...
متن کاملComparative Analysis of Weber’s Charismatic Authority and Imam Khomeini’s Role in Leading the Islamic Revolution of Iran
In Islamic revolution of Iran effective role of Imam Khomeini’s leadership caused many thinkers to interpret this revolution based on Max Weber’s theory of charismatic authority. However, due to serious and fundamental distinction between western politics and Imam Khomeini’s movement in bases and concepts, the author believes the distinctions and contradictions have led to deviation and underes...
متن کاملSharing Leadership on Corporate Boards: a Critical Requirement
Executive Summary Critical to the success of a high performance board is the ability of its directors to share leadership and to work as a dynamic team. Yet historically boardrooms have proven to be one of the most difficult places to build an effective team. Numerous factors work against boards operating as teams such as the small amount of time directors have together, limited access to criti...
متن کاملImam Khomeini's Leadership Rejects Charismatic Leadership Theory
Many local and foreign theorists and authorities have tried to present a theoretical elaboration of the nature of Imam Khomeini’s leadership and its profound impact. Therefore, the basic question of this research foresees this fact “What kind of interactions has existed between Imam Khomeini’s personality and leadership method and the observation of human dignity? Was this method of leadershi...
متن کامل