Corporate Leadership and Its Role in Shaping Organizational Culture and Performance

Abstract

Increasing globalization, cutthroat competition, recurrent financial crises, emerging health crises (e.g. the coronavirus) and new social media technology strain companies to rethink the human practices. Such ever-growing business environment particularly calls upon companies to develop sustainable leadership practices and create a well-established organizational climate. By promoting organizational value system, the leader can influence the work behavior and attitudes of the employees and results. In this context, the present book proposes to investigate and understand the influence of corporate leadership on the organizational culture and performance from multi-disciplinary perspective. In other words, the aim of this book is to provide a comprehensive and in-depth multi-perspective analysis and lies at the crossroads of different theories (e.g. leadership theories, agency, theory, resource dependency theory and positive accounting theory) from different disciplines (e.g. corporate finance, behavioral finance and management). From managerial perspective, for instance, leadership can shape culture by developing skills such as creating personal credibility and establishing trusted relationships. Thereby, leadership styles (transformational leadership, in particular) can build greater innovation and satisfactory organizational culture and lead to organizational effectiveness. Based on this crux, a leader can affect employees in achieving better organizational performance and influence business results (i.e. long-term financial performance). That is why, from this perspective, it is important to determine how leadership and management decisions and styles affect organizational culture and apprehend whether leadership influences (employee, organizational, financial) performance. From corporate finance perspective, it is interesting to investigate the impact of CEO/Director behavior on firm performance across the world based on different financial theories. This can lead to better apprehend the strategic role of CEO/Director for firm sustainability and provide bigger picture of CEO/Director role and practices around the world. (PsycInfo Database Record (c) 2022 APA, all rights reserved)