Interactions Between The CEO and Board Members - Research Assignment

Internal Code: 5784

Research Assignment:

The problem to be addressed in this study is whether there is a relationship between the interactions between the CEO and board members, corporate performance, and stock prices. Interactions involve trust, which is defined as the psychological state regarding positive expectations (Rosseau et al., 1998). There have been many studies on the effects of corporate governance, but virtually none on whether interactions between the CEO and board members predict corporate performance and stock prices. Westphal (1999) argued that the members of the board monitor the CEO and these interactions predicted the corporation’s financial performance and stock prices however, Westphal’s (1999) research was limited to advice interactions initiated by CEOs. There are no other studies in interactions and there is a gap in the knowledge. Questions: Positive interactions between ceo and board members predict better corporate performance