Purpose- The study investigates the moderating role of Chief Executive Officer Duality on board attributes and firm performance of companies listed in Kenya.
Design/Methodology- The research used a longitudinal research design. Panel data were derived from published accounts for sixteen years that is from 2002-2017. IGLS regression models were used to test the hypothesis.
Findings- The empirical results indicated that the independence of the board, the size of the board, and the duration in which the board member served the organization, positively influence the firm performance. However, CEO duality does not moderate the relationship.
Practical Implications- Regulatory bodies such as NSE and CMA in Kenya should ensure that listed firms have more independent directors serving aboard, ensure a reasonable size, and increase the board tenure to enhance firm performance. Further, it is evident that the combined roles of the CEO and chairman may not influence the efficiency of the board in the Kenyan context.
Policy implications- The Capital Market Authorities in Kenya should consider revising the board requirements on the independency of the boards, tenure, and size as per the findings of this study. Moreover, delinking the powers of the board Chair and CEO should not be mandatory, especially for small growing firms.
Keywords: Firm performance, CEO duality, Board independence, Board tenure, Board size