CEO Duality and Firm Performance: Single Model Analysis and HHI-Based Ownership Structure Investigation
DOI:
https://doi.org/10.63556/tisej.2026.1837Keywords:
CEO Duality, Firm Performance, Corporate Governance, Herfindahl-Hirschman Index (HHI)Abstract
This research investigates the relationship between CEO duality—defined as the combination of the Chief Executive Officer and Board Chair roles held by a single individual—and firm performance, as measured by various financial indicators. Using a comprehensive single-model framework, the study initially examines the direct effect of CEO duality on firm performance and subsequently analyzes how this relationship is influenced by ownership concentration, operationalized through the Herfindahl-Hirschman Index (HHI). The empirical analysis utilizes an optimized dataset comprising 1,392 firm-year observations from 292 publicly listed Turkish companies spanning 2009–2022. Employing robust econometric methods, the study evaluates the impact of CEO duality on Return on Assets (ROA) and Return on Equity (ROE). The findings demonstrate that CEO duality has a statistically significant positive effect on both performance measures. Furthermore, ownership concentration is classified into four categories using the HHI methodology, revealing that the impact of CEO duality differs considerably across varying levels of ownership concentration. Overall, the findings indicate that having a CEO who also serves as the Board Chair can improve a firm’s performance. The study distinguishes itself from previous research through its extensive dataset and the application of the HHI-based approach. However, a limitation of this research is that it focuses exclusively on publicly listed firms in Türkiye.
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