Do Chief Executives’ Traits Affect the Financial Performance of Risk‐trading Firms? Evidence from the UK Insurance Industry

British Journal of Management - Tập 28 Số 3 - Trang 481-501 - 2017
Mike Adams1, Wei Jiang2
1School of Management, University of Bath, Claverton Down, Bath BA2 7AY, UK
2Manchester Business School, University of Manchester, Booth Street West, Manchester M15 6PB, UK

Tóm tắt

We examine the effects of four key dimensions of Chief Executive Officers’ (CEOs’) traits on six financial performance metrics using panel data for 1999−2012 drawn from the UK's property−casualty insurance industry. We find that CEO insurance experience and CEO financial expertise enhance financial performance, while two other CEO traits − power and age − are generally not significant. Our results thus reinforce the importance of CEO insurance industry expertise and CEO financial expertise in the management and trading of risks. Our results have potential commercial and policy implications.

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