2.3 CEO Duality
Xie et al. (2003: 303) define CEO duality as that CEO also occupies the board chairman position.
The board chairman has responsibility in running board meetings, and overseeing the process of appointing and monitoring CEO. The CEO as board chairman has more power and is more likely to make decisions based on his personal interest. The board, therefore, is unable to carry out its duties effectively. Then, the separation of the CEO and board chairman position is very crucial (Jensen,1993: 866).