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- Title
Lead Independent Director: Impact on Firm Performance and Financial Misstatements.
- Authors
Chandar, Nandini; Xiaochuan Zheng
- Abstract
This paper examines whether the presence of a lead independent director improves firm performance and reduces financial misstatements. Using a sample of Fortune 1000 companies in the year 2013, we find that the effect of lead independent directors on firm performance hinges on CEO -Chair duality. For companies with CEO-Chair duality, the existence of a lead independent director is positively associated with improved firm performance as measured by Tobin's Q. In contrast, we do not find a similar association for companies separating the CEO and board chair positions. In addition, we do not find an association between the existence of a lead independent director and the likelihood of misstatements. These results suggest that the existence of a lead independent director helps improve a company's corporate governance.
- Subjects
ORGANIZATIONAL performance; FINANCIAL performance; CHAIRMAN of the board; CORPORATE governance
- Publication
Journal of Accounting & Finance (2158-3625), 2023, Vol 23, Issue 6, p23
- ISSN
2158-3625
- Publication type
Article