Issue Information

• DOI: http://doi.org/10.1002/jcaf.22393
• Published date: 01 April 2019
• Date: 01 April 2019

VOLUME 30, NUMBER 2 •April 2019

Editorial

7Wealth Shock: The Case of Apple in 2018

Louis Le Guyader

Blind Peer Reviews

13 Do firms with dual chief executive officers perform better than their counterparts?

C. Joe Ueng and Vinita Ramaswamy

Agency theory contends that shareholder interests require protection by separation of the

roles of board chair and chief executive officer (CEO). Duality (CEO also chairman of the

board) increases the likelihood of the CEO entrenchment by reducing board monitoring

effectiveness. Stewardship theory argues that shareholder interests are maximized by having

the dual CEOs. According to stewardship theory, firms with dual CEOs have some major

advantages over their counterparts. Such CEOs establish strong leadership and provide better

strategic directions for the firm. Consequently, shareholders benefit form dual CEOs.

Evidence on the relationship between dual CEO and firm performance is mixed. While some

studies found that there is a positive relationship between two variables, others found an

inverse relationship between two. This study attempts to shed some light on this issue.

Results from the study indicate that there is a statistically significantly positive relationship

between dual CEO and the firm's size, the number of insider director, and the percentage of

shares held by the control shareholders. Results from this study indicated that there is no

significant relationship between the CEO duality and financial performance in the short run.

However, the firms with dual CEO, on average, perform better than their counterparts in the

long run.

23 Effects of regulation on audits: A Canadian example

Anne-Marie T. Lelkes

The increase in regulation has caused the number of publicly traded Canadian public

companies to decline. This study analyzes audit fee data from Audit Analytics from 2002

through 2015 for Canadian companies to determine if they have moved away from using Big