Board leadership structure and performance of Chinese firms in Singapore

Abstract

We examine the effects of board leadership structure on the performance of Chinese firms listed on the Singapore Stock Exchange. Using a sample of 105 firms covering 2009 to 2011, we find that CEO duality positively affects firm performance that can largely be explained by stewardship theory. There is also support for contingency theory as the CEO duality-firm performance relationship depends on whether Chinese firms are incorporated in Singapore or otherwise. This study offers insights for corporate regulators to soften their stance on the monitoring clauses concerning CEO duality. Major stakeholders in Singapore-based Chinese firms may need to bring some balance to board independence, board size, and the nomination process, particularly where CEO duality improves firm performance.