The Impact of Corporate Governance on Chief Executive Officer (CEO) Duality in Iranian Banking Sector

Abstract

The objective of this paper is to examine the effects of corporate governance mechanisms on Chief Executive Officer (CEO) Duality in Iranian Banking Sector. There are several aspects and dimensions of corporate
governance, which may influence a CEO Duality but this study focused on three aspects namely Board’s size
(BOSI); Board’s Independence (BOIN) and State ownership (STOWN). This paper utilizes a panel data
analysis all the Iranian Banking Sector over a four-year period from years 2008 to 2011. In this paper, log of
bank’s annual total assets (SIZE) and total debt divided by total assets (LEV) are control variables. A logistic
regression analysis is used to test the hypotheses. The results show has a positive and significant relationship
between Board’s Independence; Leverage and Chief Executive Officer Duality. Also, there is no relationship
between Board’s size; State ownership; size and Chief Executive Officer Duality.