The Impact of CEO Duality on Firm Financial Performance



Author Information

Zyad Marashdeh, The Hashemite University, Jordan

Abstract

The board of directors is accountable for acting in the best interests of shareholders and managers. Accordingly, an effective and independent board is more likely to monitor the top management to align the interests of the shareholders and managers. This study aims to investigate the impact of CEO duality on firm performance of industrial and services companies that are listed on the Amman Stock Exchange (ASE) for the period 2014 to 2024. The sample comprised of 71 firms, totaling 840 observations in a balanced panel data. Data that used in this paper are secondary data sourced from annual report and the financial statement published by ASE website. The statistic used in this research is tested using multiple regression analysis. Firm performance is measured by return on asset (ROA). The independent variables were CEO duality, board size, number of board meetings. Firm age, firm size and leverage were added to our model as control variables. The result of this study shows that CEO duality, board size, firm age, and firm size have a positive significant impact on firm financial performance. On the other hand, the number of board meetings and leverage was found significant with a negative impact on firm financial performance. This study contributes to the literature by providing empirical evidence about the impact of CEO duality on firm performance in the context of developing countries specifically in Jordan.


Paper Information

Conference: WCSS2026
Stream: Economics and Management

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Posted by James Alexander Gordon