Can differences in the background characteristics of the chairperson–CEO vertical dyad reduce management agency costs?—A perspective Based on the internal configuration of the top management team
We test whether differences in the background characteristics of firms’ chairperson and CEO can reduce management agency costs. We find that when the chairperson is older, has a higher level of education, and has more overseas experience than the CEO, the management agency costs will be lower. A ser...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2023-03-01
|
| Series: | China Journal of Accounting Research |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S1755309123000035 |
| _version_ | 1797897312210518016 |
|---|---|
| author | Qianhua Lei Jingchang Li Yaheng Zhong Yujia Huang |
| author_facet | Qianhua Lei Jingchang Li Yaheng Zhong Yujia Huang |
| author_sort | Qianhua Lei |
| collection | DOAJ |
| description | We test whether differences in the background characteristics of firms’ chairperson and CEO can reduce management agency costs. We find that when the chairperson is older, has a higher level of education, and has more overseas experience than the CEO, the management agency costs will be lower. A series of robustness tests do not change our conclusions. In further analysis, we find that the negative relationship between the two is more significant for SOEs or firms experiencing fierce market competition. Finally, we also find that the chairman-CEO’s vertical dyad background characteristics differences can help to improve firm performance. Our study provides theoretical and practical implications for companies on how to best configure their top management team. |
| first_indexed | 2024-04-10T07:55:33Z |
| format | Article |
| id | doaj.art-9305f04fe15140e9a02431992cf4e329 |
| institution | Directory Open Access Journal |
| issn | 1755-3091 |
| language | English |
| last_indexed | 2024-04-10T07:55:33Z |
| publishDate | 2023-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | China Journal of Accounting Research |
| spelling | doaj.art-9305f04fe15140e9a02431992cf4e3292023-02-23T04:30:49ZengElsevierChina Journal of Accounting Research1755-30912023-03-01161100293Can differences in the background characteristics of the chairperson–CEO vertical dyad reduce management agency costs?—A perspective Based on the internal configuration of the top management teamQianhua Lei0Jingchang Li1Yaheng Zhong2Yujia Huang3Corresponding author.; South China University of Technology, Guangzhou, Guangdong 510640, ChinaSouth China University of Technology, Guangzhou, Guangdong 510640, ChinaSouth China University of Technology, Guangzhou, Guangdong 510640, ChinaSouth China University of Technology, Guangzhou, Guangdong 510640, ChinaWe test whether differences in the background characteristics of firms’ chairperson and CEO can reduce management agency costs. We find that when the chairperson is older, has a higher level of education, and has more overseas experience than the CEO, the management agency costs will be lower. A series of robustness tests do not change our conclusions. In further analysis, we find that the negative relationship between the two is more significant for SOEs or firms experiencing fierce market competition. Finally, we also find that the chairman-CEO’s vertical dyad background characteristics differences can help to improve firm performance. Our study provides theoretical and practical implications for companies on how to best configure their top management team.http://www.sciencedirect.com/science/article/pii/S1755309123000035Vertical dyad characteristic differencesManagement agency costsTop management team |
| spellingShingle | Qianhua Lei Jingchang Li Yaheng Zhong Yujia Huang Can differences in the background characteristics of the chairperson–CEO vertical dyad reduce management agency costs?—A perspective Based on the internal configuration of the top management team China Journal of Accounting Research Vertical dyad characteristic differences Management agency costs Top management team |
| title | Can differences in the background characteristics of the chairperson–CEO vertical dyad reduce management agency costs?—A perspective Based on the internal configuration of the top management team |
| title_full | Can differences in the background characteristics of the chairperson–CEO vertical dyad reduce management agency costs?—A perspective Based on the internal configuration of the top management team |
| title_fullStr | Can differences in the background characteristics of the chairperson–CEO vertical dyad reduce management agency costs?—A perspective Based on the internal configuration of the top management team |
| title_full_unstemmed | Can differences in the background characteristics of the chairperson–CEO vertical dyad reduce management agency costs?—A perspective Based on the internal configuration of the top management team |
| title_short | Can differences in the background characteristics of the chairperson–CEO vertical dyad reduce management agency costs?—A perspective Based on the internal configuration of the top management team |
| title_sort | can differences in the background characteristics of the chairperson ceo vertical dyad reduce management agency costs a perspective based on the internal configuration of the top management team |
| topic | Vertical dyad characteristic differences Management agency costs Top management team |
| url | http://www.sciencedirect.com/science/article/pii/S1755309123000035 |
| work_keys_str_mv | AT qianhualei candifferencesinthebackgroundcharacteristicsofthechairpersonceoverticaldyadreducemanagementagencycostsaperspectivebasedontheinternalconfigurationofthetopmanagementteam AT jingchangli candifferencesinthebackgroundcharacteristicsofthechairpersonceoverticaldyadreducemanagementagencycostsaperspectivebasedontheinternalconfigurationofthetopmanagementteam AT yahengzhong candifferencesinthebackgroundcharacteristicsofthechairpersonceoverticaldyadreducemanagementagencycostsaperspectivebasedontheinternalconfigurationofthetopmanagementteam AT yujiahuang candifferencesinthebackgroundcharacteristicsofthechairpersonceoverticaldyadreducemanagementagencycostsaperspectivebasedontheinternalconfigurationofthetopmanagementteam |