Does the South African stock market value an independent dual board leadership structure?


  • Collins Gyakari Ntim University of Glasgow, UK



We examine the crucial policy question of whether the South African (SA) stock market values a dual board leadership structure (DBLS) using a sample of 169 listed firms from 2002 to 2007. We find a significant positive link between DBLS and market valuation, but only in firms with independent chairpersons, implying that the market values firms with independent DBLS more highly. Our results are robust across a number of econometric models that control for different types of market valuation proxies and endogeneity problems. Our findings offer empirical support for agency theory, which suggests that independent DBLS increases the capacity of the board to effectively advise, monitor and discipline top management, and thereby improving market valuation.

Author Biography

Collins Gyakari Ntim, University of Glasgow, UK

Accounting and Finance, Business School


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How to Cite

Ntim, C. G. (2012). Does the South African stock market value an independent dual board leadership structure?. Economics and Business Letters, 1(1), 35–45.