Does CEO Duality affect the Firm Performance? Evidence from Sri Lanka

Abstract

This article examines the impact of CEO duality on firm performance of listed non financial firms in Sri Lanka. This study uses the ROA as proxy measure for form performance. This study employs a cross sectional ordinary least square analysis of 128 firms listed in Colombo Stock Exchange (CSE) for the financial year ending 2013. The results show that CEO duality is significantly negatively associated with ROA. In the case of control variables, board size and leverage are significantly negatively associated with ROA on the other hand firm size is significantly positively linked with ROA. This paper contributes to the existing literature on corporate governance and firm performance by introducing a framework in identifying and analyzing variables that affect the relationship between CEO duality and firm performance. Keywords: Corporate governance, CEO duality, firm performance, ROA