Our paper presents an empirical examination of the relationship between
CEO duality and acquisition performance. Specifically, we address two related
questions involving CEO duality under the auspices of agency and stewardship
theories. The first involves the extent to which CEO duality directly influences
the profitability of acquisitions. The second involves the influence of duality and
the nature of outside board monitoring on acquisition performance. Our study
tests competing hypotheses drawn from these two perspectives. We find that
CEO duality affects performance negatively and there is an important interaction
effect between outside board monitoring and CEO duality.
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