Lead Directorship and Firm Performance

Authors : Bo Ouyang

Pages : 5-18

View : 13 | Download : 7

Publication Date : 2013-12-01

Article Type : Other

Abstract :This paper empirically explores the role of the lead directors in the corporate governance system and strives to empirically examine the association between the lead directorship and firm performance. I measure firm performance by three empirical proxies: Tobin’s Q, returns on assets (ROA) and stock returns. I explore the research question on the relationship between lead directorship and firm performance in both cross-sectional and inter-temporal contexts. The sample consists of S & P 500 firms from 2001 to 2004 that have all the required financial, stock returns, and other relevant information. Overall, the empirical results of both cross-sectional and inter-temporal analyses indicate a positive association between lead directorship and firm performance.
Keywords : Corporate governance, lead directors, firm performance, Sarbanes oxleyact.