CEO Social Power, Board Inclusiveness, and Corporate Performance after Ethnic Conflicts

CEO Social Power, Board Inclusiveness, and Corporate Performance after Ethnic Conflicts

Kamil Korhan Nazliben, Luc Renneboog, Emil Uduwalage

Series number :

Serial Number: 
931/2023

Date posted :

August 25 2023

Last revised :

August 25 2023
SSRN Share

Keywords

  • agency costs • 
  • CEO power • 
  • Civil War • 
  • Ethnic Conflict • 
  • Ethnicity • 
  • Gender • 
  • Board diversity • 
  • Inclusiveness • 
  • political connections

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.

Published in

Published in: 
Description: 
Emerging Markets Review 56 (2023): 101056.

Authors

Real name:
Kamil Korhan Nazliben
Real name:
Emil Uduwalage