Board Leadership From Combination To Separation: Study Of Three Separation Forms And The Antecedents

The factors that drive the board leadership structure to transfer from combination to separation have garnered more and more attention.What drive the company to separate the board leadership roles? What kind of separation forms can they take? Why the board decides to adopt a certain forms other than the other forms? What are the influence factors behind them? By answering these problems,this paper carries on the review form the theoretical and empirical level.Firstly,the paper has a review of relevant theories,and generalizes the definitions and characteristics of three separation forms.Then from theoretical and empirical view,this paper sums up the antecedents of these three types.Finally this paper builds a studying model and examines hypotheses mainly by using multinomial logistic regression.After theoretical analysis and empirical research,the result shows that: First,financial alignment exists in companies of China.Second,there's no positive relationship between financial alignment and future shareholder return.Third,among firms undergoing a CEO–board chair separation,CEOs undergoing an apprentice and departure separation have the shorter career horizons than those undergoing a demotion separation.Fouth,among departure separations,the effect of CEO career horizon on boards' choice of CEO–board chair separation type will be strongest when firm performance is poor and board independence is high.In the end,the paper points out some suggestions to practice and figure out future study direction.