Abstract

DAVILA-VELASQUEZ, Juan Pablo  and  LAGOS-CORTES, Diógenes. CEO Duality and Firm Value: Evidence from Mexico. Entramado [online]. 2020, vol.16, n.2, pp.12-23.  Epub Jan 17, 2021. ISSN 1900-3803.  https://doi.org/10.18041/1900-3803/entramado.2.6435.

Regulators and corporate governance activists are lobbying companies to eliminate the CEO duality; however the effectiveness of this recommendation is questioned given that empirical evidence has found conflicting results. This document studied the effects of the CEO's duality on the value of the company in a sample of 104 Mexican companies that were publicly traded between 2000 and 2013. For this, different regression models were estimated using the ordinary least squares technique. The firm value was measured through Tobin's Q and ROA. Empirical results showed that there is no relationship between CEO duality and value after controlling for board characteristics such as size and independence.

JEL CLASSIFICATION M10, G32, G34

Keywords : Corporate governance; CEO duality; firm value; agency theory; stewardship theory.

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