Do Chief Executives’ Traits Affect the Financial Performance of Risk‐Trading Firms? Evidence from the UK Insurance Industry

21 Pages Posted: 14 Jul 2017

See all articles by Mike Adams

Mike Adams

University of Bath - School of Management

Wei Jiang

Alliance Manchester Business School, University of Manchester

Date Written: July 2017

Abstract

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.

Suggested Citation

Adams, Mike and Jiang, Wei, Do Chief Executives’ Traits Affect the Financial Performance of Risk‐Trading Firms? Evidence from the UK Insurance Industry (July 2017). British Journal of Management, Vol. 28, Issue 3, pp. 481-501, 2017. Available at SSRN: https://ssrn.com/abstract=3001432 or http://dx.doi.org/10.1111/1467-8551.12222

Mike Adams (Contact Author)

University of Bath - School of Management ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

Wei Jiang

Alliance Manchester Business School, University of Manchester ( email )

Booth Street West
Manchester, M15 6PB
United Kingdom

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