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
Date Written: 2013
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: Suggested Citation