The Influence of CEO Hubris on Firm Performance in Indonesia: The Moderating Effects of CEO Power and Board Vigilance

IF 1.1 Q4 BUSINESS

Gadjah Mada international journal of business Pub Date : 2020-10-05 DOI:10.22146/GAMAIJB.55239

Noni Ayu Rizka, T. H. Handoko

引用次数: 3

Abstract

Past studies on CEO hubris has found that board vigilance is effective in managing the negative outcome of hubris. Some studies found CEO non-duality and independent director representation are effective in decreasing the damage of hubris. However, these studies have only explored the causal relationship of hubris and firm performance in the one-tier corporate governance setting. This study analyzed the influence of CEO hubris on firm performance in Indonesia by taking into account the CEO-board power dynamics. Indonesia adopts the two-tier corporate system where the board is divided into the board of directors and commissioners. Through 99 public listed companies, this study found that hubris in Indonesian CEOs contributes well to firm performance. Moreover, a bigger commissioner board is effective in strengthening the positive influence of hubris on firm performance in Indonesia. Furthermore, this study hints that two-tier corporate governance is more efficient in controlling hubris than the one-tier system.

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印尼CEO傲慢对企业绩效的影响:CEO权力和董事会警惕性的调节作用

过去对CEO傲慢的研究发现，董事会警惕在管理傲慢的负面后果方面是有效的。有研究发现，CEO非二元性和独立董事代表能有效降低傲慢的危害。然而，这些研究只探讨了在单层公司治理环境下傲慢与公司绩效的因果关系。本研究通过考虑CEO-董事会权力动态，分析了印尼CEO傲慢对公司绩效的影响。印度尼西亚实行董事会分为董事会和理事的双层法人制度。通过对99家上市公司的研究，本研究发现印尼ceo的傲慢对公司绩效有很好的贡献。此外，在印尼，一个更大的董事委员会可以有效地加强傲慢对公司业绩的积极影响。此外，本研究暗示双层公司治理比单层公司治理更有效地控制傲慢。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Gadjah Mada international journal of business BUSINESS-

CiteScore

2.00

自引率

14.30%

发文量

审稿时长

40 weeks

期刊介绍： An objective of the Gadjah Mada International Journal of Business (GamaIJB) is to promote the wide dissemination of the results of systematic scholarly inquiries into the broad field of business research. The GamaIJB is intended to be the journal for publishing articles reporting the results of research on business. The GamaIJB invites manuscripts in the areas: Marketing Management, Finance Management, Strategic Management, Operation Management, Human Resource Management, E-business, Knowledge Management, Management Accounting, Management Control System, Management Information System, International Business, Business Economics, Business Ethics and Sustainable, and Entrepreneurship.