Conference Proceeding Article
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.
Business Law, Public Responsibility, and Ethics | Strategic Management Policy
Strategy and Organisation
Proceedings of the Annual Conference of the Administrative Sciences Association of Canada
City or Country
GENG, Xuesong; Hennessy, Dean; and Bates, Kimberly.
Substitution or Symbolic Effects? A Reexamination of Corporate Governance and Firm Performance. (2005). Proceedings of the Annual Conference of the Administrative Sciences Association of Canada. 125-135. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/1753