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CEO social power, board inclusiveness, and corporate performance after ethnic conflicts

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  • Nazliben, Kamil K.
  • Renneboog, Luc
  • Uduwalage, Emil

Abstract

We investigate the impact of CEO power on corporate performance in Sri Lanka, characterized by demarcated ethno-linguistic and religious boundaries and devastating ethnic conflicts with subsequent reconciliation. We focus on a CEO's social-dominance power, based on ethnicity, gender, and political connections. Social-dominance power (lack of ethno-religious-linguistic and gender diversity) augments agency conflicts and worsens corporate performance and financial stability in the post-civil-war era. Board inclusiveness (representing different ethnicities, religions, languages, and gender) at the top decision and monitoring levels of corporations positively affects performance.

Suggested Citation

  • Nazliben, Kamil K. & Renneboog, Luc & Uduwalage, Emil, 2023. "CEO social power, board inclusiveness, and corporate performance after ethnic conflicts," Emerging Markets Review, Elsevier, vol. 56(C).
    • Handle: RePEc:eee:ememar:v:56:y:2023:i:c:s1566014123000614
    DOI: 10.1016/j.ememar.2023.101056
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    More about this item

    Keywords

    Agency costs; CEO power; Civil war; Ethnic conflict; Ethnicity; Gender; Board diversity; Inclusiveness; Political connections;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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