Authors: Sana Ben Cheikh
Addresses: Department of Management, High Institute of Management, University of Gabes, Rue Jilani Habib – 6002 Gabès, Tunisia; Research Laboratory Finance et Stratégie des Affaires (FIESTA), ISG Tunis, University of Tunis, 41, Avenue de la Liberte, Cite Bouchoucha, Le Bardo 2000 – Tunis, Tunisia
Abstract: This paper specifies the relationship between CEO power and organisational characteristics and examines their involvement on the firm's performance. Moreover, this paper highlights the implication of managerial power on firm performance when CEO is involved in the appointment of new membership and at the same time in a shareholding of the firm. We select 39 Tunisian listed firms for the period of eight years (2000-2007) and we measure CEO power by Adams et al. (2005) index. According to empirical results, Tunisian firms are more performing when their CEOs are powerful. The results also confirm the weakness of the board attributes to enhance the firm performance when the Tunisian governance system explains largely this result.
Keywords: CEO power; board of directors; firm performance; listed companies; listed firms; Tunisia; managerial power; organisational characteristics; organisational factors; new membership appointments; shareholdings; shareholders; longitudinal studies; board weakness; governance.
African Journal of Accounting, Auditing and Finance, 2014 Vol.3 No.2, pp.115 - 129
Received: 08 May 2021
Accepted: 12 May 2021
Published online: 30 Nov 2014 *