CEO social power, board inclusiveness, and corporate performance after ethnic conflicts

Kamil K. Nazliben, Luc Renneboog and Emil Uduwalage

Emerging Markets Review, 2023, vol. 56, issue C

Abstract: We investigate the impact of CEO power on corporate performance in Sri Lanka, characterized by demarcated ethno-linguistic and religious boundaries and devastating ethnic conflicts with subsequent reconciliation. We focus on a CEO's social-dominance power, based on ethnicity, gender, and political connections. Social-dominance power (lack of ethno-religious-linguistic and gender diversity) augments agency conflicts and worsens corporate performance and financial stability in the post-civil-war era. Board inclusiveness (representing different ethnicities, religions, languages, and gender) at the top decision and monitoring levels of corporations positively affects performance.

Keywords: Agency costs; CEO power; Civil war; Ethnic conflict; Ethnicity; Gender; Board diversity; Inclusiveness; Political connections (search for similar items in EconPapers)
JEL-codes: G34 M12 M14 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:56:y:2023:i:c:s1566014123000614

DOI: 10.1016/j.ememar.2023.101056

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