Research Article
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Year 2017, , 460 - 468, 30.12.2017

Ozcan Isik

https://doi.org/10.17261/Pressacademia.2017.754

Abstract

References

  • Ammari, A. B. B., Kadria, M., & Ellouze, A. 2014. “Board Structure and Firm Performance: Evidence from French Firms Listed in SBF 120”, International Journal of Economics and Financial Issues, 4(3), pp. 580-590.
  • Arellano, M., & Bover, O. 1995. “Another Look at the Instrumental Variable Estimation of Error-Components Model”, Journal of Econometrics, 68, pp. 29-51.
  • Aygün, M. ve İç, S. 2010. “Genel Müdürün Aynı Zamanda Yönetim Kurulu Üyesi Olması Firma Performansını Etkiler mi?”, Muhasebe ve Finansman Dergisi, Sayı: 47, s. 192-201.
  • Belhaj, S., & Mateus, C. 2016. "Corporate Governance Impact on Bank Performance Evidence From Europe", Corporate Ownership & Control, 13(4), pp. 583-597.
  • Baltagi, B. H. 2005. Econometric Analysis of Panel Data, 3rd edition, John Wiley&Sons Ltd., West Sussex, England.
  • Belkhir, M. 2009. “Board of Directors' Size and Performance in the Banking Industry”, International Journal of Managerial Finance, 5(2), pp. 201-221.
  • Blundell, R., & Bond, S. 1998. “Initial Conditions and Moment Restrictions in Dynamic Panel Data Models”, Journal of Econometrics, 87(1), pp. 115-143.
  • Bond, S. R. 2002. “Dynamic Panel Data Models: A Guide to Micro Data Methods and Practice”, Portuguese economic journal, 1(2), pp. 141162.
  • Boussaada, R., & Karmani, M. 2015. “Did Board of Directors Have an Impact on MENA Bank Performance?”, International Journal of Economics and Finance, 7(4), pp. 46-56.
  • Davis, J. H., Schoorman, F. D., & Donaldson, L. 1997. “Toward a Stewardship Theory of Management”, Academy of Management Review, 22(1), pp. 20-47.
  • De Jonghe, O., Disli, M., & Schoors, K. 2012. “Corporate Governance, Opaque Bank Activities, and Risk/Return Efficiency: Pre-and Post-Crisis Evidence from Turkey”, Journal of Financial Services Research, 41(1-2), pp. 51-80.
  • Doğan, M., Elitas, B. L., Agca, V. & Ögel, S. 2013. “The Impact of CEO Duality on Firm Performance: Evidence from Turkey”, International Journal of Business and Social Science, 4(2), pp. 149-155.
  • Donaldson, L. & Davis, J. H. 1991. “Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns”, Australian Journal of Management, 16(1), pp. 49-64.
  • Duru, A., Iyengar, R. J., & Zampelli, E. M. 2016. “The Dynamic Relationship between CEO Duality and Firm Performance: the Moderating Role of Board Independence”, Journal of Business Research, 69(10), pp. 4269-4277.
  • Eisenhardt, K. M. 1989. “Agency theory: An Assessment and Review”, Academy of Management Review, 14(1), pp. 57-74.
  • El-Chaarani, H. 2014. “The Impact of Corporate Governance on the Performance of Lebanese Banks”, the International Journal of Business and Finance Research, 8(5), pp. 35-46.
  • Elsayed, K. 2010. “A Multi‐theory Perspective of Board Leadership Structure: What Does the Egyptian Corporate Governance Context Tell Us?, British Journal of Management, 21(1), pp. 80-99.
  • Ersoy, E., Bayrakdaroğlu, A. ve Şamiloğlu F. 2011. “Türkiye’de Kurumsal Yönetim ve Firma Performansı (Tobin-Q ve Anormal Getiri) Arasındaki İlişkinin Analizi”, Finans Politik & Ekonomik Yorumlar, 48(554), s. 71-83.
  • Fama, E. F., & Jensen, M. C. 1983. “Separation of Ownership and Control”, the journal of law and Economics, 26(2), pp. 301-325.
  • Greene, W. H. (2003), Econometric Analysis (5th ed.). Singapore: Pearson Education Inc.
  • Grove, H., Patelli, L., Victoravich, L. M., & Xu, P. T. 2011. “Corporate Governance and Performance in the Wake of the Financial Crisis: Evidence from US Commercial Banks”, Corporate Governance: An International Review, 19(5), pp. 418-436.
  • Gujarati, D.N., (2004). Basic Econometrics (4th Ed.), The McGraw−Hill Companies, Avenue of the Americas, New York.
  • Hewa Wellalage, N., & Locke, S. 2011. “Does CEO Duality is Really Matter? Evidence from an Emerging Market”, Corporate Ownership & Control, 8(4), pp. 112-122.
  • Hsiao, C., (2003). Analysis of Panel Data. Cambridge University Press.
  • Jensen, M. C. 1993. “The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems”, the Journal of Finance, 48(3), pp. 831-880.
  • Jensen, M. C., & Meckling, W. H. 1976. “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure”, Journal of financial Economics, 3(4), pp. 305-360.
  • Kaymak, T., & Bektas, E. 2008. “East Meets West? Board Characteristics in an Emerging Market: Evidence from Turkish Banks”, Corporate Governance, 16(6), pp. 550-561.
  • Kouki, M., & Guizani, M. 2015. “Outside Directors and Firm Performance: The Moderating Effects of Ownership and Board Leadership Structure”, International Business Research, 8(6), pp. 104-116.
  • Kula, V. 2005. “The Impact of the Roles, Structure and Process of Boards on Firm Performance: evidence from Turkey”, Corporate Governance, 13(2), pp. 165-176.
  • Liang, Q., Xu, P., & Jiraporn, P. 2013. “Board Characteristics and Chinese Bank Performance”, Journal of Banking & Finance, 37(8), pp. 29532968.
  • Montgomery, C. A., & Kaufman, R. 2003. “The Board's Missing Link”, Harvard Business Review, 81(3), pp. 86-93.
  • Moscu, R. G. 2015. “Study on Correlation between CEO Duality And Corporate Performance of Companies Listed on the Bucharest Stock Exchange”, Journal of Social and Economic Statistics, 4(1), pp. 47-53.
  • Nickell, S. 1981. “Biases in Dynamic Models with Fixed Effects”, Econometrica, 49, pp. 1417-1426.
  • Nahar Abdullah, S. 2004. “Board Composition, CEO Duality and Performance among Malaysian Listed Companies”, Corporate Governance: The International Journal of Business in Society, 4(4), pp. 47-61.
  • Naushad, M., & Malik, S. A. 2015. “Corporate Governance and Bank Performance: A Study of Selected Banks in GCC Region”, Asian Social Science, 11(9), pp. 226-234.
  • Nguyen, T., Locke, S., & Reddy, K. 2014. “A Dynamic Estimation of Governance Structures and Financial Performance for Singaporean Companies”, Economic Modelling, 40, p. 1-11.
  • Nicholson, G. J., & Kiel, G. C. 2007. “Can Directors Impact Performance? A Case‐Based Test of Three Theories of Corporate Governance”, Corporate Governance: An International Review, 15(4), pp. 585-608.
  • Ramdani, D., & Witteloostuijn, A. V. 2010. ”The Impact of Board Independence and CEO Duality on Firm Performance: A Quantile Regression Analysis for Indonesia, Malaysia, South Korea and Thailand”, British Journal of Management, 21(3), pp. 607-627.
  • Rechner, P. L., & Dalton, D. R. 1991. “CEO Duality and Organizational Performance: A Longitudinal Analysis”, Strategic Management Journal, 12(2), pp. 155-160.
  • Roodman, D. 2009. “How to do xtabond2: An Introduction to Difference and System GMM in Stata” The Stata Journal, 9(1), pp. 86–136.
  • Shrivastav, S. M., & Kalsie, A. 2016. “The Relationship Between CEO Duality and Firm Performance: An Analysis Using Panel Data Approach”, IUP Journal of Corporate Governance, 15(2), pp.37-58.
  • Strebel, P. 2004. “The Case for Contingent Governance”, MIT Sloan Management Review, 45(2), pp. 59-66.
  • Tian, J. J., & Lau, C. M. 2001. “Board Composition, Leadership Structure and Performance in Chinese Shareholding Companies”, Asia Pacific Journal of Management, 18(2), pp. 245-263.
  • Veprauskaitė, E., & Adams, M. 2013. “Do Powerful Chief Executives Influence the Financial Performance of UK Firms?”, The British Accounting Review, 45(3), pp. 229-241.
  • Windmeijer, F. 2005. “A finite Sample Correction for the Variance of Linear Efficient Two-Step GMM Estimators”, Journal of Econometrics, 126(1), pp. 25-51.
  • Yan Lam, T., & Kam Lee, S. 2008. “CEO Duality and Firm Performance: Evidence from Hong Kong”, Corporate Governance: The International Journal of Business in Society, 8(3), pp. 299-316.
  • Yermack, D. 1996. “Higher Market Valuation of Companies with a Small Board of Directors”, Journal of Financial Economics, 40, pp. 185211.

THE DYNAMIC ASSOCIATION BETWEEN CEO-DUALITY AND BANK PERFORMANCE: THE MODERATING ROLE OF BOARD SIZE

Year 2017, , 460 - 468, 30.12.2017

Ozcan Isik

https://doi.org/10.17261/Pressacademia.2017.754

Abstract

Purpose - The aim of
this study is to examine the association between CEO-duality and bank financial
performance in Turkey.

Methodology - All parameter estimates of regression models are based
on the system GMM panel regression analyses. Our data covers all commercial
banks operating in Turkish banking sector during the period 2007-2013.

Findings - Our empirical results imply that CEO-duality has a
significantly positive effect on bank financial performance measured by the
ratio of net income to the average total assets. In addition, we find a
negative moderating impact of board on the positive linkage between CEO-duality
and bank performance.

Conclusion - It can be concluded that as the number of members of
the board raises, the positive influence of CEO-duality decreases for Turkish
banking sector in the analyzed period.









 

Keywords

CEO-duality board size corporate governance commercial banks Turkey

References

  • Ammari, A. B. B., Kadria, M., & Ellouze, A. 2014. “Board Structure and Firm Performance: Evidence from French Firms Listed in SBF 120”, International Journal of Economics and Financial Issues, 4(3), pp. 580-590.
  • Arellano, M., & Bover, O. 1995. “Another Look at the Instrumental Variable Estimation of Error-Components Model”, Journal of Econometrics, 68, pp. 29-51.
  • Aygün, M. ve İç, S. 2010. “Genel Müdürün Aynı Zamanda Yönetim Kurulu Üyesi Olması Firma Performansını Etkiler mi?”, Muhasebe ve Finansman Dergisi, Sayı: 47, s. 192-201.
  • Belhaj, S., & Mateus, C. 2016. "Corporate Governance Impact on Bank Performance Evidence From Europe", Corporate Ownership & Control, 13(4), pp. 583-597.
  • Baltagi, B. H. 2005. Econometric Analysis of Panel Data, 3rd edition, John Wiley&Sons Ltd., West Sussex, England.
  • Belkhir, M. 2009. “Board of Directors' Size and Performance in the Banking Industry”, International Journal of Managerial Finance, 5(2), pp. 201-221.
  • Blundell, R., & Bond, S. 1998. “Initial Conditions and Moment Restrictions in Dynamic Panel Data Models”, Journal of Econometrics, 87(1), pp. 115-143.
  • Bond, S. R. 2002. “Dynamic Panel Data Models: A Guide to Micro Data Methods and Practice”, Portuguese economic journal, 1(2), pp. 141162.
  • Boussaada, R., & Karmani, M. 2015. “Did Board of Directors Have an Impact on MENA Bank Performance?”, International Journal of Economics and Finance, 7(4), pp. 46-56.
  • Davis, J. H., Schoorman, F. D., & Donaldson, L. 1997. “Toward a Stewardship Theory of Management”, Academy of Management Review, 22(1), pp. 20-47.
  • De Jonghe, O., Disli, M., & Schoors, K. 2012. “Corporate Governance, Opaque Bank Activities, and Risk/Return Efficiency: Pre-and Post-Crisis Evidence from Turkey”, Journal of Financial Services Research, 41(1-2), pp. 51-80.
  • Doğan, M., Elitas, B. L., Agca, V. & Ögel, S. 2013. “The Impact of CEO Duality on Firm Performance: Evidence from Turkey”, International Journal of Business and Social Science, 4(2), pp. 149-155.
  • Donaldson, L. & Davis, J. H. 1991. “Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns”, Australian Journal of Management, 16(1), pp. 49-64.
  • Duru, A., Iyengar, R. J., & Zampelli, E. M. 2016. “The Dynamic Relationship between CEO Duality and Firm Performance: the Moderating Role of Board Independence”, Journal of Business Research, 69(10), pp. 4269-4277.
  • Eisenhardt, K. M. 1989. “Agency theory: An Assessment and Review”, Academy of Management Review, 14(1), pp. 57-74.
  • El-Chaarani, H. 2014. “The Impact of Corporate Governance on the Performance of Lebanese Banks”, the International Journal of Business and Finance Research, 8(5), pp. 35-46.
  • Elsayed, K. 2010. “A Multi‐theory Perspective of Board Leadership Structure: What Does the Egyptian Corporate Governance Context Tell Us?, British Journal of Management, 21(1), pp. 80-99.
  • Ersoy, E., Bayrakdaroğlu, A. ve Şamiloğlu F. 2011. “Türkiye’de Kurumsal Yönetim ve Firma Performansı (Tobin-Q ve Anormal Getiri) Arasındaki İlişkinin Analizi”, Finans Politik & Ekonomik Yorumlar, 48(554), s. 71-83.
  • Fama, E. F., & Jensen, M. C. 1983. “Separation of Ownership and Control”, the journal of law and Economics, 26(2), pp. 301-325.
  • Greene, W. H. (2003), Econometric Analysis (5th ed.). Singapore: Pearson Education Inc.
  • Grove, H., Patelli, L., Victoravich, L. M., & Xu, P. T. 2011. “Corporate Governance and Performance in the Wake of the Financial Crisis: Evidence from US Commercial Banks”, Corporate Governance: An International Review, 19(5), pp. 418-436.
  • Gujarati, D.N., (2004). Basic Econometrics (4th Ed.), The McGraw−Hill Companies, Avenue of the Americas, New York.
  • Hewa Wellalage, N., & Locke, S. 2011. “Does CEO Duality is Really Matter? Evidence from an Emerging Market”, Corporate Ownership & Control, 8(4), pp. 112-122.
  • Hsiao, C., (2003). Analysis of Panel Data. Cambridge University Press.
  • Jensen, M. C. 1993. “The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems”, the Journal of Finance, 48(3), pp. 831-880.
  • Jensen, M. C., & Meckling, W. H. 1976. “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure”, Journal of financial Economics, 3(4), pp. 305-360.
  • Kaymak, T., & Bektas, E. 2008. “East Meets West? Board Characteristics in an Emerging Market: Evidence from Turkish Banks”, Corporate Governance, 16(6), pp. 550-561.
  • Kouki, M., & Guizani, M. 2015. “Outside Directors and Firm Performance: The Moderating Effects of Ownership and Board Leadership Structure”, International Business Research, 8(6), pp. 104-116.
  • Kula, V. 2005. “The Impact of the Roles, Structure and Process of Boards on Firm Performance: evidence from Turkey”, Corporate Governance, 13(2), pp. 165-176.
  • Liang, Q., Xu, P., & Jiraporn, P. 2013. “Board Characteristics and Chinese Bank Performance”, Journal of Banking & Finance, 37(8), pp. 29532968.
  • Montgomery, C. A., & Kaufman, R. 2003. “The Board's Missing Link”, Harvard Business Review, 81(3), pp. 86-93.
  • Moscu, R. G. 2015. “Study on Correlation between CEO Duality And Corporate Performance of Companies Listed on the Bucharest Stock Exchange”, Journal of Social and Economic Statistics, 4(1), pp. 47-53.
  • Nickell, S. 1981. “Biases in Dynamic Models with Fixed Effects”, Econometrica, 49, pp. 1417-1426.
  • Nahar Abdullah, S. 2004. “Board Composition, CEO Duality and Performance among Malaysian Listed Companies”, Corporate Governance: The International Journal of Business in Society, 4(4), pp. 47-61.
  • Naushad, M., & Malik, S. A. 2015. “Corporate Governance and Bank Performance: A Study of Selected Banks in GCC Region”, Asian Social Science, 11(9), pp. 226-234.
  • Nguyen, T., Locke, S., & Reddy, K. 2014. “A Dynamic Estimation of Governance Structures and Financial Performance for Singaporean Companies”, Economic Modelling, 40, p. 1-11.
  • Nicholson, G. J., & Kiel, G. C. 2007. “Can Directors Impact Performance? A Case‐Based Test of Three Theories of Corporate Governance”, Corporate Governance: An International Review, 15(4), pp. 585-608.
  • Ramdani, D., & Witteloostuijn, A. V. 2010. ”The Impact of Board Independence and CEO Duality on Firm Performance: A Quantile Regression Analysis for Indonesia, Malaysia, South Korea and Thailand”, British Journal of Management, 21(3), pp. 607-627.
  • Rechner, P. L., & Dalton, D. R. 1991. “CEO Duality and Organizational Performance: A Longitudinal Analysis”, Strategic Management Journal, 12(2), pp. 155-160.
  • Roodman, D. 2009. “How to do xtabond2: An Introduction to Difference and System GMM in Stata” The Stata Journal, 9(1), pp. 86–136.
  • Shrivastav, S. M., & Kalsie, A. 2016. “The Relationship Between CEO Duality and Firm Performance: An Analysis Using Panel Data Approach”, IUP Journal of Corporate Governance, 15(2), pp.37-58.
  • Strebel, P. 2004. “The Case for Contingent Governance”, MIT Sloan Management Review, 45(2), pp. 59-66.
  • Tian, J. J., & Lau, C. M. 2001. “Board Composition, Leadership Structure and Performance in Chinese Shareholding Companies”, Asia Pacific Journal of Management, 18(2), pp. 245-263.
  • Veprauskaitė, E., & Adams, M. 2013. “Do Powerful Chief Executives Influence the Financial Performance of UK Firms?”, The British Accounting Review, 45(3), pp. 229-241.
  • Windmeijer, F. 2005. “A finite Sample Correction for the Variance of Linear Efficient Two-Step GMM Estimators”, Journal of Econometrics, 126(1), pp. 25-51.
  • Yan Lam, T., & Kam Lee, S. 2008. “CEO Duality and Firm Performance: Evidence from Hong Kong”, Corporate Governance: The International Journal of Business in Society, 8(3), pp. 299-316.
  • Yermack, D. 1996. “Higher Market Valuation of Companies with a Small Board of Directors”, Journal of Financial Economics, 40, pp. 185211.
There are 47 citations in total.

Details

Journal Section Articles
Authors

Ozcan Isik

Publication Date December 30, 2017
Published in Issue Year 2017

Cite

APA Isik, O. (2017). THE DYNAMIC ASSOCIATION BETWEEN CEO-DUALITY AND BANK PERFORMANCE: THE MODERATING ROLE OF BOARD SIZE. Research Journal of Business and Management, 4(4), 460-468. https://doi.org/10.17261/Pressacademia.2017.754
AMA Isik O. THE DYNAMIC ASSOCIATION BETWEEN CEO-DUALITY AND BANK PERFORMANCE: THE MODERATING ROLE OF BOARD SIZE. RJBM. December 2017;4(4):460-468. doi:10.17261/Pressacademia.2017.754
Chicago Isik, Ozcan. “THE DYNAMIC ASSOCIATION BETWEEN CEO-DUALITY AND BANK PERFORMANCE: THE MODERATING ROLE OF BOARD SIZE”. Research Journal of Business and Management 4, no. 4 (December 2017): 460-68. https://doi.org/10.17261/Pressacademia.2017.754.
EndNote Isik O (December 1, 2017) THE DYNAMIC ASSOCIATION BETWEEN CEO-DUALITY AND BANK PERFORMANCE: THE MODERATING ROLE OF BOARD SIZE. Research Journal of Business and Management 4 4 460–468.
IEEE O. Isik, “THE DYNAMIC ASSOCIATION BETWEEN CEO-DUALITY AND BANK PERFORMANCE: THE MODERATING ROLE OF BOARD SIZE”, RJBM, vol. 4, no. 4, pp. 460–468, 2017, doi: 10.17261/Pressacademia.2017.754.
ISNAD Isik, Ozcan. “THE DYNAMIC ASSOCIATION BETWEEN CEO-DUALITY AND BANK PERFORMANCE: THE MODERATING ROLE OF BOARD SIZE”. Research Journal of Business and Management 4/4 (December 2017), 460-468. https://doi.org/10.17261/Pressacademia.2017.754.
JAMA Isik O. THE DYNAMIC ASSOCIATION BETWEEN CEO-DUALITY AND BANK PERFORMANCE: THE MODERATING ROLE OF BOARD SIZE. RJBM. 2017;4:460–468.
MLA Isik, Ozcan. “THE DYNAMIC ASSOCIATION BETWEEN CEO-DUALITY AND BANK PERFORMANCE: THE MODERATING ROLE OF BOARD SIZE”. Research Journal of Business and Management, vol. 4, no. 4, 2017, pp. 460-8, doi:10.17261/Pressacademia.2017.754.
Vancouver Isik O. THE DYNAMIC ASSOCIATION BETWEEN CEO-DUALITY AND BANK PERFORMANCE: THE MODERATING ROLE OF BOARD SIZE. RJBM. 2017;4(4):460-8.

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