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, and the impact of separation on performance. This Research Spotlight expands upon issues introduced in the Quick Guide Board of Directors: Structure and Consequences.
Copyright held by David F. Larcker and Brian Tayan. Further inquiries about reproduction and use should be directed to the Corporate Governance Research Initiative.
