Strategic Leaders’ Impact on Corporate Policies and Firm Performance: Insights from CEOs and CFOs of Large Listed Firms in Germany

Schmalenbach Business Review, Vol. 65, April 2013, pp. 82-111

30 Pages Posted: 15 Oct 2013

See all articles by Björn Six

Björn Six

Darmstadt University of Technology

Marcel Normann

International University Schloß Reichartshausen

Ruth Maria Stock

Darmstadt University of Technology

Dirk Schiereck

Darmstadt University of Technology

Date Written: 2013

Abstract

We extend prior empirical research on the questions of whether, how much, and under which conditions strategic leaders matter to the fate of their firms. With a 20-year Panel of 110 German firms, our analysis broadens the prevalent focus on CEO influences in U.S. settings. The results indicate that CEOs have more influence on firm performance and transactional policies than CFOs, while CFOs have greater influence on funding policies; further, that, depending on firm size and ownership characteristics, managerial discretion can moderate the influence of CEOs and CFOs. However, strategic leaders’ influences are moderated differently by changes in managerial discretion.

Keywords: Chief Executive Officer (CEO ), Chief Financial Officer (CFO), Corporate Policies, Firm Performance, Strategic Leaders, Upper-Echelon Theory

JEL Classification: G3, L1, L2, M0

Suggested Citation

Six, Björn and Normann, Marcel and Stock, Ruth Maria and Schiereck, Dirk, Strategic Leaders’ Impact on Corporate Policies and Firm Performance: Insights from CEOs and CFOs of Large Listed Firms in Germany (2013). Schmalenbach Business Review, Vol. 65, April 2013, pp. 82-111. Available at SSRN: https://ssrn.com/abstract=2337991

Björn Six

Darmstadt University of Technology ( email )

Universitaets- und Landesbibliothek Darmstadt
Magdalenenstrasse 8
Darmstadt, Hesse D-64289
Germany

Marcel Normann

International University Schloß Reichartshausen ( email )

65375 Oestrich-Winkel
Germany

Ruth Maria Stock (Contact Author)

Darmstadt University of Technology ( email )

Hochschulstr. 1
Darmstadt, Hesse D-64289
Germany

Dirk Schiereck

Darmstadt University of Technology ( email )

Universitaets- und Landesbibliothek Darmstadt
Magdalenenstrasse 8
Darmstadt, Hesse D-64289
Germany

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