دانلود رایگان مقاله انگلیسی تاثیر خصلت مدیران ارشد بر عملکرد مالی شرکت های ریسک کننده - وایلی 2017

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.

Discussion and conclusion

Using a panel sample of 92 UK property−casualty insurers over the 14 years 1999−2012, we examine the relation between CEOs’ traits and six financial performance measures. Our study is predicated on the notion that financial metrics, as both economic calculative devices and financial outcome indicators, can credibly signal and allow stakeholders to effectively interpret the role legitimacy and commercial effectiveness of CEOs. In this regard, financial performance indicators can play an important role in mitigating information asymmetries and assuring the various stakeholders of technically complex and informationally obtuse insurance firms as to the security of their economic interests. Contrary to what was hypothesized, we find that CEO power and CEO age are generally unrelated to the performance of insurance firms. However, as predicted all our financial performance indicators improve when CEOs have insurance experience and financial expertise. This observation reinforces the functional importance of CEO insurance industry expertise in risk-knowledge-intensive and financial-information-sensitive insurance firms. It also suggests that appointing CEOs with insurance industry experience and business acumen is a credible signal of the legitimacy of the insurer’s leadership capability and future financial viability in the eyes of stakeholders (Miller and Yang, 2015). Confirmatory evidence that insurance and financial expertise amongst CEOs matters for the performance of insurance firms could be useful to both investors, with an interest in how the personal traits of CEOs could contribute to improved traded value, and to policyholders and their representatives (e.g. regulators) who have an explicit interest in the financial viability of insurance providers.