The dynamic association between CEO-duality and bank performance: the moderating role of board size

Abstract

Purpose - The aim of this study is to examine the association between CEO-duality and bank financial performance in Turkey. Methodology - All parameter estimates of regression models are based on the system GMM panel regression analyses. Our data covers all commercial banks operating in Turkish banking sector during the period 2007-2013. Findings - Our empirical results imply that CEO-duality has a significantly positive effect on bank financial performance measured by the ratio of net income to the average total assets. In addition, we find a negative moderating impact of board on the positive linkage between CEO-duality and bank performance. Conclusion - It can be concluded that as the number of members of the board raises, the positive influence of CEO-duality decreases for Turkish banking sector in the analyzed period.