Board Monitoring in a Privately Held Firm: When Does CEO Duality Matter? The Moderating Effect of Ownership

References

• Aguilera, R. V., and G. Jackson (2003). “The Cross‐National Diversity of Corporate Governance: Dimensions and Determinants,” Academy of Management Review 28(3), 447–465.
   Web of Science ®Google Scholar
• Audretsch, D. B., M. Hülsbeck, and E. E. Lehmann (2013). “Families as Active Monitors of Firm Performance,” Journal of Family Business Strategy 4(2), 118–130.
   Google Scholar
• Baliga, B. R., R. C. Moyer, and R. S. Rao (1996). “CEO Duality and Firm Performance: What's the Fuss?,” Strategic Management Journal 17(1), 41–53.
   Web of Science ®Google Scholar
• Bammens, Y., W. Voordeckers, and A. Van Gils (2008). “Board of Directors in Family Firms: A Generational Perspective,” Small Business Economics 31(2), 163–180.
   Web of Science ®Google Scholar
• Bammens, Y., W. Voordeckers, and A. Van Gils (2011). “Boards of Directors in Family Businesses: A Literature Review and Research Agenda,” International Journal of Management Review 13(2), 134–152.
   Web of Science ®Google Scholar
• Baysinger, B. D., and H. N. Butler (1985). “Corporate Governance and the Board of Directors: Performance Effects of Changes in Board Composition,” Journal of Law, Economics and Organization 1(1), 101–124.
   Google Scholar
• Bhagal, S., B. Bolton, and R. Romano (2008). “The Promise and Peril of Corporate Governance Indices,” Columbia Law Review 108(8), 1803–1882.
   Google Scholar
• Boyd, B. K. (1995). “CEO Duality and Firm Performance: A Contingency Approach,” Strategic Management Journal 16(4), 301–312.
   Web of Science ®Google Scholar
• Boyd, B. K., K. T. Haynes, and F. Zona (2011). “Dimensions of CEO–Board Relations,” Journal of Management Studies 48(8), 1892–1923.
   Web of Science ®Google Scholar
• Brambor, T., W. R. Clark, and M. Golder (2006). “Understanding Interaction Models: Improving Empirical Analyses,” Political Analysis 14(1), 63–82.
   Web of Science ®Google Scholar
• Braun, M., and A. Sharma (2007). “Should the CEO Also Be Chair of the Board? An Empirical Examination of Family‐Controlled Public Firms,” Family Business Review 20(2), 111–126.
   Google Scholar
• Brickley, J. A., J. L. Coles, and G. Jarrell (1997). “Leadership Structure: Separating the CEO and Chairman of the Board,” Journal of Corporate Finance 3(3), 189–220.
   Google Scholar
• Brown, T. A. (2006). Confirmatory Factor Analysis for Applied Research. New York, NY: The Guilford Press.
   Google Scholar
• Cannella, A. A., and M. Lubatkin (1993). “Succession as a Sociopolitical Process – Internal Impediments to Outsider Selection,” Academy of Management Journal 36(4), 763–793.
   Web of Science ®Google Scholar
• Chen, C.‐W., J. B. Lin, and B. Yi (2008). “CEO Duality and Firm Performance – An Endogenous Issue,” Corporate Ownership and Control 6(1), 58–65.
   Google Scholar
• Chen, E.‐T., and J. Nowland (2010). “Optimal Board Monitoring in Family‐owned Companies: Evidence from Asia,” Corporate Governance: An International Review 18(1), 3–17.
   Web of Science ®Google Scholar
• Chrisman, J. J., J. H. Chua, F. W. Kellermanns, and E. P. C. Chang (2007). “Are Family Managers Agents or Stewards? An Exploratory Study in Privately Held Family Firms,” Journal of Business Research 60(10), 1030–1038.
   Web of Science ®Google Scholar
• Dahya, J., L. G. Garcia, and J. van Bommel (2009). “One Man Two Hats: What's All the Commotion!,” The Financial Review 44(2), 179–212.
   Google Scholar
• Daily, C. M., D. R. Dalton, and A. A. Cannella (2003). “Corporate Governance: Decades of Dialogue and Data,” Academy of Management Review 28(3), 371–382.
   Web of Science ®Google Scholar
• Dalton, D. R., C. M. Daily, E. A. Ellstrand, and J. L. Johnson (1998). “Meta‐Analytic Reviews of Board Composition, Leadership Structure, and Financial Performance,” Strategic Management Journal 19(3), 269–290.
   Web of Science ®Google Scholar
• Dalton, D. R., M. A. Hitt, S. T. Certo, and C. M. Dalton (2007). “The Fundamental Agency Problem and Its Mitigation,” The Academy of Management Annals 1(1), 1–64.
   Web of Science ®Google Scholar
• Davies, P. L. (2002). “Board Structures in the UK and Germany: Convergence or Continuing Divergence?,” International and Comparative Corporate Law Journal 2(4), 435–456.
   Google Scholar
• De Maere, J., A. Jorissen, and L. M. Uhlaner (2014). “Board Capital and the Downward Spiral: Antecedents of Bankruptcy in a Sample of Unlisted Firms,” Corporate Governance: An International Review 22(5), 387–407.
   Web of Science ®Google Scholar
• De Massis, A., J. Kotlar, G. Campopiano, and L. Cassia (2013). “Dispersion of Family Ownership and the Performance of Small‐to‐Medium Size Private Family Firms,” Journal of Family Business Strategy 4(3), 166–175.
   Web of Science ®Google Scholar
• Desender, K. A., R. V. Aguilera, R. Crespi, and M. Garcia‐cestona (2013). “When Does Ownership Matter? Board Characteristics and Behavior,” Strategic Management Journal 34(7), 823–842.
   Web of Science ®Google Scholar
• Deutsch, Y. (2005). “The Impact of Board Composition on Firms' Critical Decisions: A Meta‐Analytic Review,” Journal of Management 31(3), 424–444.
   Web of Science ®Google Scholar
• Donaldson, L., and J. H. Davies (1991). “Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns,” Australian Journal of Management 16(1), 49–65.
   Google Scholar
• Eisenhardt, K. M. (1985). “Control – Organizational and Economic Approaches,” Management Science 31(2), 134–149.
   Web of Science ®Google Scholar
• Eisenhardt, K. M. (1989a). “Agency Theory: An Assessment and Review,” The Academy of Management Review 14, 57–74.
   Web of Science ®Google Scholar
• Eisenhardt, K. M. (1989b). “Making Fast Strategic Decisions in High‐Velocity Environments,” The Academy of Management Journal 32(3), 543–576.
   Web of Science ®Google Scholar
• Fama, E. F. (1980). “Agency Problems and the Theory of the Firm,” Journal of Political Economy 88, 288–307.
   Web of Science ®Google Scholar
• Fama, E. F., and M. C. Jensen (1983). “Separation of Ownership and Control,” Journal of Law and Economics 26(2), 301–325.
   Web of Science ®Google Scholar
• Feltham, T. S., G. Feltham, and J. J. Barnett (2005). “The Dependence of Family Businesses on a Single Decision‐Maker,” Journal of Small Business Management 43(1), 1–15.
   Web of Science ®Google Scholar
• Fernández, C., and R. Arrondo (2005). “Alternative Internal Controls as Substitutes of the Board of Directors,” Corporate Governance: An International Review 13(6), 856–866.
   Web of Science ®Google Scholar
• Filatotchev, I., and M. Wright (2005). The Life‐Cycle of Corporate Governance. Cheltenham: Edward Elgar.
   Google Scholar
• Finkelstein, S. (1992). “Power in Top Management Teams: Dimensions, Measurement, and Validation,” The Academy of Management Journal 35(3), 505–538.
   PubMed Web of Science ®Google Scholar
• Finkelstein, S., and R. A. D'aveni (1994). “CEO Duality as a Double‐Edged Sword: How Boards of Directors Balance Entrenchment Avoidance and Unity of Command,” Academy of Management Journal 37(5), 1079–1108.
   Web of Science ®Google Scholar
• Finkelstein, S., D. C. Hambrick, and A. A. Cannella (2009). Strategic Leadership: Theory and Research on Executives, Top Management Teams, and Boards. New York, NY: Oxford University Press.
   Google Scholar
• Finkelstein, S., and A. C. Mooney (2003). “Not the Usual Suspects: How to Use Board Process to Make Boards Better,” The Journal of Management Executive 17(2), 101–113.
   Google Scholar
• Forbes, D. P., and F. J. Milliken (1999). “Cognition and Corporate Governance: Understanding Boards of Directors as Strategic Decision‐Making Groups,” Academy of Management Review 24(3), 489–505.
   Web of Science ®Google Scholar
• Gabrielsson, J. (2007). “Correlates of Board Empowerment in Small Companies,” Entrepreneurship Theory and Practice 31(5), 687–711.
   Web of Science ®Google Scholar
• Gersick, K. E., J. A. Davis, M. M. Hampton, and I. Lansberg (1997). Generation to Generation: Life Cycles of the Family Business. Boston, MA: Harvard University Press.
   Google Scholar
• Gove, S., and M. Junkunc (2013). “Dummy Constructs? Binomial Categorical Variables as Representations of Constructs: CEO Duality Through Time,” Organizational Research Methods 16(1), 100–126.
   Google Scholar
• Hambrick, D. C., and S. Finkelstein (1987). “Managerial Discretion: A Bridge Between Polar Views of Organizations,” in Research in Organizational Behaviour. Eds. L. L. Cummings and B. M. Staw. Greenwich, CT: JAI Press, 369–406.
   Google Scholar
• Hambrick, D. C., A. V. Werder, and E. J. Zajac (2008). “New Directions in Corporate Governance Research,” Organization Science 19(3), 381–385.
   Web of Science ®Google Scholar
• Heflin, F., and K. Shaw (2000). “Blockholder Ownership and Market Liquidity,” Journal of Financial and Quantitative Analysis 35(4), 621–633.
   Web of Science ®Google Scholar
• Hillman, A. J., and T. Dalziel (2003). “Board of Directors and Firm Performance: Integrating Agency and Resource Dependence Perspectives,” Academy of Management Review 28(3), 383–396.
   Web of Science ®Google Scholar
• Huse, M. (1993). “Relational Norms as Supplement to Neo‐Classical Understanding of Directorates: An Empirical Study of Boards of Directors,” Journal of Socio‐Economics 22(3), 219–240.
   Google Scholar
• Huse, M. (2005). “Accountability and Creating Accountability: A Framework for Exploring Behavioral Perspectives of Corporate Governance,” British Journal of Management 16, 65–79.
   Web of Science ®Google Scholar
• Huse, M. (2007). Boards, Governance and Value Creation: The Human Side of Corporate Governance. Cambridge, NY: Cambridge University Press.
   Google Scholar
• Huybrechts, J., W. Voordeckers, and N. Lybaert (2013). “Entrepreneurial Risk Taking of Private Family Firms: The Influence of a Nonfamily CEO and the Moderating Effect of CEO Tenure,” Family Business Review 26(2), 161–179.
   Web of Science ®Google Scholar
• IFERA (International Family Enterprise Research Academy) (2003). “Family Businesses Dominate,” Family Business Review 16(4), 235–240.
   Google Scholar
• Jaskiewicz, P., and S. Klein (2007). “The Impact of Goal Alignment on Board Composition and Board Size in Family Businesses,” Journal of Business Research 60(10), 1080–1089.
   Web of Science ®Google Scholar
• Jensen, M. C. (1993). “Presidential Address: The Modern Industrial Revolution, Exit and the Failure of Internal Control Systems,” Journal of Finance 48, 831–880.
   Web of Science ®Google Scholar
• Jensen, M. C., and W. H. Meckling (1976). “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure,” Journal of Financial Economics 3(4), 305–360.
   Web of Science ®Google Scholar
• Jensen, M. C., and K. J. Murphy (1990). “Performance Pay and Top‐Management Incentives,” Journal of Political Economy 98(2), 225–264.
   Web of Science ®Google Scholar
• Johnson, J. L., C. M. Daily, and A. E. Ellstrand (1996). “Boards of Directors: A Review and Research Agenda,” Journal of Management 22(3), 408–438.
   Google Scholar
• Judge, W. Q., and C. P. Zeithaml (1992). “Institutional and Strategic Choice Perspectives on Board Involvement in the Strategic Decision Process,” Academy of Management Journal 35(4), 766–794.
   PubMed Web of Science ®Google Scholar
• Kam, C. D., and R. J. Franzese (2007). Modeling and Interpreting Interactive Hypotheses in Regression Analysis. Ann Arbor, MI: The University of Michigan Press.
   Google Scholar
• Kang, E., and A. Zardkoohi (2005). “Board Leadership Structure and Firm Performance,” Corporate Governance: An International Review 13(6), 785–799.
   Google Scholar
• Kanuk, L., and C. Berenson (1975). “Mail Surveys and Response Rates – A Literature Review,” Journal of Marketing Research 12(4), 440–453.
   Web of Science ®Google Scholar
• Krause, R., and M. Semadeni (2013). “Apprentice, Departure, and Demotion: An Examination of the Three Types of CEO–Board Chair Separation,” Academy of Management Journal 56(3), 805–826.
   Web of Science ®Google Scholar
• Krause, R., M. Semadeni, and A. A. Cannella (2014). “CEO Duality: A Review and Research Agenda,” Journal of Management 40(1), 256–286.
   Web of Science ®Google Scholar
• Lansberg, I. (1999). Succeeding Generations. Boston, MA: Harvard Business School Press.
   Google Scholar
• Lubatkin, M. H., Y. Ling, and W. S. Schulze (2007). “An Organizational Justice‐Based View of Self‐Control and Agency Costs in Family Firms,” Journal of Management Studies 44(6), 955–971.
   Web of Science ®Google Scholar
• Lubatkin, M. H., W. S. Schulze, Y. Ling, and R. N. Dino (2005). “The Effects of Parental Altruism on the Governance of Family‐Managed firms,” Journal of Organizational Behavior 26(3), 313–330.
   Web of Science ®Google Scholar
• Lynall, M. D., B. R. Golden, and A. J. Hillman (2003). “Board Composition from Adolescence to Maturity: A Multitheoretic View,” Academy of Management Review 28(3), 416–431.
   Web of Science ®Google Scholar
• Mace, M. L. (1971). Directors: Myth and Reality. Boston, MA: Harvard Business School Press.
   Google Scholar
• Machold, S., and S. Farquhar (2013). “Board Task Evolution: A Longitudinal Field Study in the UK,” Corporate Governance: An International Review 21(2), 147–164.
   Web of Science ®Google Scholar
• Mcconaughy, D. L., C. H. Matthews, and A. S. Fialko (2001). “Founding Family Controlled Firms: Performance, Risk, and Value,” Journal of Small Business Management 39(1), 31–49.
   Web of Science ®Google Scholar
• Minichilli, A., A. Zattoni, S. Nielsen, and M. Huse (2012). “Board Task Performance: An Exploration of Micro‐ and Macro‐Level Determinants of Board Effectiveness,” Journal of Organizational Behavior 33(2), 193–215.
   PubMed Web of Science ®Google Scholar
• Minichilli, A., A. Zattoni, and F. Zona (2009). “Making Boards Effective: An Empirical Examination of Board Task Performance,” British Journal of Management 20(1), 55–74.
   Web of Science ®Google Scholar
• Monks, R. A. G., and N. Minow (2011). Corporate Governance. West‐Sussex: John Wiley & Sons.
   Google Scholar
• Mustakallio, M., E. Autio, and S. A. Zahra (2002). “Relational and Contractual Governance in Family Firms: Effects on Strategic Decision Making,” Family Business Review 15(3), 205–222.
   Google Scholar
• Nordqvist, M., P. Sharma, and F. Chirico (2014). “Family Firm Heterogeneity and Governance: A Configuration Approach,” Journal of Small Business Management 52(2), 192–209.
   Web of Science ®Google Scholar
• Ocasio, W. (1997). “Towards an Attention‐Based View of the Firm,” Strategic Management Journal 18(SI), 187–206.
   Google Scholar
• Pieper, T. M., S. B. Klein and P. Jaskiewicz (2008). “The Impact of Goal Alignment on Board Existence and Top Management Team Composition: Evidence from Family‐Influenced Businesses,” Journal of Small Business Management 46(3), 372–394.
   Web of Science ®Google Scholar
• Podsakoff, P. M., S. B. Mackenzie, J.‐Y. Lee, and N. P. Podsakoff (2003). “Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies,” Journal of Applied Psychology 88(5), 879–903.
   PubMed Web of Science ®Google Scholar
• Pugliese, A., A. Minichilli, and A. Zattoni (2014). “Integrating Agency and Resource Dependence Theory: Firm Profitability, Industry Regulation, and Board Task Performance,” Journal of Business Research 67(6), 1189–1200.
   Web of Science ®Google Scholar
• Rediker, K. J., and A. Seth (1995). “Board of Directors and Substitution Effects of Alternative Governance Mechanisms,” Strategic Management Journal 16(2), 85–99.
   Web of Science ®Google Scholar
• Schulze, W. S., M. H. Lubatkin, and R. N. Dino (2003a). “Exploring the Agency Consequences of Ownership Dispersion among the Directors of Private Family Firms,” Academy of Management Journal 46(2), 179–194.
   Web of Science ®Google Scholar
• Schulze, W. S., M. H. Lubatkin, and R. N. Dino (2003b). “Toward a Theory of Agency and Altruism in Family Firms,” Journal of Business Venturing 18(4), 473–490.
   Web of Science ®Google Scholar
• Schulze, W. S., M. H. Lubatkin, R. N. Dino, and A. K. Buchholtz (2001). “Agency Relationships in Family Firms: Theory and Evidence,” Organization Science 12(2), 99–116.
   Web of Science ®Google Scholar
• Semadeni, M., M. C. Withers, and S. T. Certo (2014). “The Perils of Endogeneity and Instrumental Variables in Strategy Research: Understanding Through Simulation,” Strategic Management Journal 35(7), 1070–1079.
   Web of Science ®Google Scholar
• Shen, W. (2003). “The Dynamics of the CEO‐Board Relationship: An Evolutionary Perspective,” Academy of Management Review 28(3), 466–476.
   Web of Science ®Google Scholar
• Shleifer, A., and R. W. Vishny (1997). “A Survey of Corporate Governance,” The Journal of Finance 52(2), 737–783.
   Web of Science ®Google Scholar
• Siebels, J.‐F., and D. Zu knyphausen‐aufseß (2012). “A Review of Theory in Family Business Research: The Implications for Corporate Governance,” International Journal of Management Reviews 14(3), 280–304.
   Web of Science ®Google Scholar
• Simon, H. A. (1947). Administrative Behavior: A Study of Decision‐making Processes in Administrative Organizations. Chicago, IL: Macmillan.
   Google Scholar
• Stiles, P., and B. Taylor (2001). Boards at Work. Oxford: Oxford University Press.
   Google Scholar
• Sundaramurthy, C., J. M. Mahoney, and J. T. Mahoney (1997). “Board Structure, Antitakeover Provisions, and Stockholder Wealth,” Strategic Management Journal 18(3), 231–245.
   Web of Science ®Google Scholar
• Sur, S., E. Lvina, and M. Magnan (2013). “Why Do Boards Differ? Because Owners Do: Assessing Ownership Impact on Board Composition,” Corporate Governance: An International Review 21(4), 373–389.
   Web of Science ®Google Scholar
• Tagiuri, R., and J. Davis (1996). “Bivalent Attributes of the Family Firm,” Family Business Review 9(2), 199–208.
   Google Scholar
• Tuggle, C. S., D. G. Sirmon, C. R. Reutzel, and L. Bierman (2010). “Commanding Board of Director Attention: Investigating How Organizational Performance and CEO Duality Affect Board Members’ Attention to Monitoring,” Strategic Management Journal 31(9), 946–968.
   Web of Science ®Google Scholar
• Uhlaner, L., M. Wright, and M. Huse (2007). “Private Firms and Corporate Governance: An Integrated Economic and Management Perspective,” Small Business Economics 29(3), 225–241.
   Web of Science ®Google Scholar
• van Den heuvel, J., A. Van Gils, and W. Voordeckers (2006). “Board Roles in Small and Medium‐Sized Family Businesses: Performance and Importance,” Corporate Governance: An International Review 14(5), 467–485.
   Web of Science ®Google Scholar
• Voordeckers, W., A. Van Gils, and J. van Den heuvel (2007). “Board Composition in Small and Medium‐Sized Family Firms,” Journal of Small Business Management 45(1), 137–156.
   Web of Science ®Google Scholar
• Westhead, P., C. Howorth, and M. Cowling (2001). “The Development of Family Companies: Management and Ownership Imperatives,” Family Business Review 14(4), 369–385.
   Google Scholar
• Westphal, J. D. (1999). “Collaboration in the Boardroom: Behavioral and Performance Consequences of CEO–Board Social Ties,” Academy of Management Journal 42(1), 7–24.
   Web of Science ®Google Scholar
• Westphal, J. D., and E. J. Zajac (1995). “Who Shall Govern? CEO/Board Power, Demographic Similarity, and New Director Selection,” Administrative Science Quarterly 40(1), 60–83.
   Web of Science ®Google Scholar
• White, H. (1980). “A Heteroskedasticity‐Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity,” Econometrica: Journal of the Econometric Society 48(4), 817–838.
   Web of Science ®Google Scholar
• Wooldridge, J. M. (2002). Econometric Analysis of Cross section and Panel Data. Cambridge, MA: MIT Press.
   Google Scholar
• Yip, T. S. L. and E. W. K. Tsang (2007). “Interpreting Dummy Variables and Their Interaction Effects in Strategy Research,” Strategic Organization 5(1), 13–30.
   Web of Science ®Google Scholar
• Zahra, S. A., D. O. Neubaum, and M. Huse (2000). “Entrepreneurship in Medium‐Sized Firms: Exploring the Effects of Ownership and Governance Systems,” Journal of Management 26(5), 947–976.
   Web of Science ®Google Scholar
• Zona, F., and A. Zattoni (2007). “Beyond the Black Box of Demography: Board Processes and Task Effectiveness within Italian Firms,” Corporate Governance: An International Review 15(5), 852–864.
   Web of Science ®Google Scholar