Abstract
This thesis is comprised of four independent essays—one theoretical and three
empirical. Motivated by advances in upper echelon theory and the ever-widening
influence of strategic leaders [chief executive officers (CEOs), top management
teams, and boards of directors] in practice, the four essays investigate the impact of
demographic and personality characteristics of strategic leaders on firm behavior and
performance.
The first essay empirically investigates the role of directors’ characteristics (in
terms of directors’ age, education, and tenure) in influencing organizational
aspirations to appoint women on top management teams. Using a soft law on equal
participation of men and women in leadership positions enacted in Germany in 2015,
the essay highlights that directors’ organizational tenure is positively associated with
firm aspirations to appoint women on top management teams in a two-tier corporate
governance system. Additionally, incumbent women on boards represents a relevant
boundary condition. Broadly, the essay contributes to understanding of how strategic
leaders influence organizational aspirations.
The second essay empirically examines how representation of gender and
ethnic minority directors on corporate boards stirs shareholder unrest (i.e., the extent
of shareholder dissatisfaction with corporate governance practices). Based on
longitudinal data from S&P 1500 firms over 2010-2019, the essay concludes that
demographic minority directors experience greater scrutiny by shareholders, such that
boards with a higher proportion of female or ethnic minority directors and their joint
presence are associated with more shareholder unrest. These results contribute to an
understanding of how board composition acts as a relevant antecedent of shareholder
activism.
8
The third essay adopts a psychological lens on strategic leadership by focusing
on two important yet often-conflated personal attributes of CEOs. Specifically, the
conceptual essay juxtaposes narcissism (i.e., a stable personality trait characterized
by an inflated sense of self and a need for attention) and hubris (i.e., a psychological
state triggered by accession to a position of significant power). It theorizes how
narcissistic and hubristic leaders relate to power distinctively. Building on the
psychology of power perspective, the essay argues that narcissistic leaders are
‘intoxicated by their self’ and are motivated to pursue positions of power as means to
reinforce their inflated sense of self. In contrast, hubristic leaders are intoxicated with
positions of power. The essay contributes to further our understanding of the
inextricable link between power and leadership.
The final essay unpacks whether and how CEO personality, particularly
narcissism, is consequential for firms’ social and financial performance. The essay
meta-analytically integrates existing discipline-spanning literature based on 67
studies that collectively yield 121,748 observations and covers the period from 1980
to 2018 in over 15 countries. Examinning how narcissistic CEOs relate to corporate
social performance, the essay affirms the paradoxical nature of narcissistic CEOs in
that they positively associate with corporate irresponsibility and corporate social
responsibility. Furthermore, regarding financial performance, the essay shows that
firms with more narcissistic CEOs are viewed favorably in the stock market,
especially in national settings characterized by collectivism and high power distance.
Overall, the essay contributes to research on the relationship between CEO
personality traits and firm performance outcomes.
Taken together, the thesis contributes to scholarship on strategic leadership. It
extends support for upper echelon theory by confirming the relevance of managerialspecific effects in explaining firm behavior and performance. The observable
9
characteristics and personalities of strategic leaders not only affect firm-level
outcomes but also affect how external audiences perceive and evaluate them, which
may have important consequences for their career outcomes and firm value.
empirical. Motivated by advances in upper echelon theory and the ever-widening
influence of strategic leaders [chief executive officers (CEOs), top management
teams, and boards of directors] in practice, the four essays investigate the impact of
demographic and personality characteristics of strategic leaders on firm behavior and
performance.
The first essay empirically investigates the role of directors’ characteristics (in
terms of directors’ age, education, and tenure) in influencing organizational
aspirations to appoint women on top management teams. Using a soft law on equal
participation of men and women in leadership positions enacted in Germany in 2015,
the essay highlights that directors’ organizational tenure is positively associated with
firm aspirations to appoint women on top management teams in a two-tier corporate
governance system. Additionally, incumbent women on boards represents a relevant
boundary condition. Broadly, the essay contributes to understanding of how strategic
leaders influence organizational aspirations.
The second essay empirically examines how representation of gender and
ethnic minority directors on corporate boards stirs shareholder unrest (i.e., the extent
of shareholder dissatisfaction with corporate governance practices). Based on
longitudinal data from S&P 1500 firms over 2010-2019, the essay concludes that
demographic minority directors experience greater scrutiny by shareholders, such that
boards with a higher proportion of female or ethnic minority directors and their joint
presence are associated with more shareholder unrest. These results contribute to an
understanding of how board composition acts as a relevant antecedent of shareholder
activism.
8
The third essay adopts a psychological lens on strategic leadership by focusing
on two important yet often-conflated personal attributes of CEOs. Specifically, the
conceptual essay juxtaposes narcissism (i.e., a stable personality trait characterized
by an inflated sense of self and a need for attention) and hubris (i.e., a psychological
state triggered by accession to a position of significant power). It theorizes how
narcissistic and hubristic leaders relate to power distinctively. Building on the
psychology of power perspective, the essay argues that narcissistic leaders are
‘intoxicated by their self’ and are motivated to pursue positions of power as means to
reinforce their inflated sense of self. In contrast, hubristic leaders are intoxicated with
positions of power. The essay contributes to further our understanding of the
inextricable link between power and leadership.
The final essay unpacks whether and how CEO personality, particularly
narcissism, is consequential for firms’ social and financial performance. The essay
meta-analytically integrates existing discipline-spanning literature based on 67
studies that collectively yield 121,748 observations and covers the period from 1980
to 2018 in over 15 countries. Examinning how narcissistic CEOs relate to corporate
social performance, the essay affirms the paradoxical nature of narcissistic CEOs in
that they positively associate with corporate irresponsibility and corporate social
responsibility. Furthermore, regarding financial performance, the essay shows that
firms with more narcissistic CEOs are viewed favorably in the stock market,
especially in national settings characterized by collectivism and high power distance.
Overall, the essay contributes to research on the relationship between CEO
personality traits and firm performance outcomes.
Taken together, the thesis contributes to scholarship on strategic leadership. It
extends support for upper echelon theory by confirming the relevance of managerialspecific effects in explaining firm behavior and performance. The observable
9
characteristics and personalities of strategic leaders not only affect firm-level
outcomes but also affect how external audiences perceive and evaluate them, which
may have important consequences for their career outcomes and firm value.
| Original language | English |
|---|---|
| Qualification | Doctor of Philosophy |
| Awarding Institution |
|
| Supervisors/Advisors |
|
| Award date | 21-Dec-2021 |
| Edition | 1 |
| Print ISBNs | 978-87-7568-045-0 |
| Electronic ISBNs | 978-87-7568-046-7 |
| Publication status | Published - 2021 |
| Externally published | Yes |