Open AccessBehavioral dominance of leaders: Performance impact study in listed companies FTSE100 in London
Author(s) -
Amara Tijani,
Adel Ncib
Publication year - 2021
Publication title -
accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.175
H-Index - 5
eISSN - 2369-7407
pISSN - 2369-7393
DOI - 10.5267/j.ac.2021.3.027
Subject(s) - corporate governance , dominance (genetics) , accounting , empirical research , panel data , business , stock exchange , independence (probability theory) , executive compensation , marketing , econometrics , economics , finance , statistics , mathematics , biochemistry , chemistry , gene
The main objective of this research is to study the impact of the behavioral dominance of executives in listed companies regarding financial performance. Empirical tests were conducted on panel data from companies belonging to the FTSE 100 in London. To address this research issue, we analyzed the link between governance and the stock market in the first section. Then, based on financial theories we formulated a set of hypotheses related to the influence of compensation, the size of the board of directors, the presence of women and the independence of the board of directors on performance. The results of the empirical tests indicate that the importance of compensation had a positive effect on performance. Conversely, the empirical tests show that the size of the Board of Directors and the duality of function had negative effects on performance. Finally, the results of the tests on the behavioral dominance of executives are depending on the characteristics of the board’s directors.