Abels, P: Corporate Performance: Do CEO Roles Matter?

Turbulence in the American economy resulted in corporate stakeholders demanding change. Scandals resulting from poor ethical choices have hindered both the integrity of financial markets and systems of corporate governance. Globalization resulted in a spiral decline of government control, which in turn created a greater need for accountability within organizations. One such adjustment was the separation of the CEO and Chairman roles within organizations. When a CEO also holds the title of Chairman, personal conflicts could impede that overall goal of wealth maximization. Corporate governance reforms have increased the accountability of boards and management while at the same time encouraging the independence of CEOs and Chairmen. The purpose of this study is to compliment the literature by revealing the independence of CEO and Chairman within U.S. corporations. CEO titles and roles of CEOs can influence both the perceived independence of management and the company‘s performance. Utilizing multiple regression, this study adds additional empirical evidence regarding the extent to which titles and roles of CEOs influence company performance in large corporations within the U.S.