One Man Two Hats - What's All the Commotion!

Posted: 20 Feb 2009

See all articles by Jay Dahya

Jay Dahya

Zicklin School of Business, Baruch College - The City University of New York

Laura Galguera-Garcia

University of Oviedo - Department of Economics

Jos van Bommel

Universite du Luxembourg - Department of Economics

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Date Written: February 16, 2009

Abstract

We examine performance in publicly listed U.K. companies over a period that encompasses the issuance of the Cadbury Committee's Code of Best Practice, which calls for the abolition of the combined CEO/COB position. We find that companies splitting the combined CEO/COB position to conform to the Code's requirement did not exhibit any absolute or relative improvement in performance when compared to various peer-group benchmarks. We do not necessarily scoff at mandated board structures, but the evidence suggests that this particular legislature coerced the abandonment of the combined CEO/COB position and appears to be wide of the mark.

Keywords: Cadbury, CEO, Directors, Governance, UK

JEL Classification: G30, G34, G28

Suggested Citation

Dahya, Jay and Galguera-Garcia, Laura and van Bommel, Jos, One Man Two Hats - What's All the Commotion! (February 16, 2009). The Financial Review, Vol. 44, No. 2, May 2009, Available at SSRN: https://ssrn.com/abstract=1344658

Jay Dahya (Contact Author)

Zicklin School of Business, Baruch College - The City University of New York ( email )

55 Lexington Ave., Box B13-260
New York, NY 10010
United States

Laura Galguera-Garcia

University of Oviedo - Department of Economics ( email )

Campus del Cristo
Oviedo, Asturias 33071
Spain

Jos Van Bommel

Universite du Luxembourg - Department of Economics ( email )

Luxembourg

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