Substitution or Symbolic Effects? A Reexamination of Corporate Governance and Firm Performance

Author

Xuesong GENG, Singapore Management UniversityFollow
Dean Hennessy, Tilburg University
Kimberly Bates, Trent University

Publication Type

Conference Proceeding Article

Version

acceptedVersion

Publication Date

6-2006

Abstract

In this paper, we use a sample of large Canadian corporations to test the substitution hypothesis and the symbolic hypothesis. We find that the positive effect of board independence on firm performance declines as managerial ownership increases. This effect becomes non-positive when highly concentrated managerial ownership makes independent board more symbolic than effective.

Discipline

Business Law, Public Responsibility, and Ethics | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Proceedings of the Annual Conference of the Administrative Sciences Association of Canada

First Page

125

Last Page

135

ISSN

1703-6801

Publisher

ASAC

City or Country

Banff, Canada

Citation

GENG, Xuesong; Hennessy, Dean; and Bates, Kimberly. Substitution or Symbolic Effects? A Reexamination of Corporate Governance and Firm Performance. (2006). Proceedings of the Annual Conference of the Administrative Sciences Association of Canada. 125-135.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/1753

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