Do chief executives' traits affect the financial performance of risk-trading firms? Evidence from the UK insurance industry

Michael Adams; Wei Jiang

doi:10.1111/1467-8551.12222

Do chief executives' traits affect the financial performance of risk-trading firms? Evidence from the UK insurance industry

Michael Adams, Wei Jiang

A&F Accounting & Finance

University of Bath

Research output: Contribution to journal › Article › peer-review

50 Downloads (Pure)

Abstract

We examine the effects of four key dimensions of Chief Executive Officers’ (CEOs) traits on six financial performance metrics using panel data for 1999-2012 drawn from the United Kingdom's (UK) property-casualty insurance industry. We find that CEO insurance experience and CEO financial expertise enhance financial performance, while two other CEO traits - power and age are generally not significant. Our results thus reinforce the importance of CEO insurance industry expertise and CEO financial expertise in the management and trading of risks. Our results have potential commercial and policy implications.

Original language	English
Pages (from-to)	481-501
Number of pages	21
Journal	British Journal of Management
Volume	28
Issue number	3
Early online date	28 Mar 2017
DOIs	https://doi.org/10.1111/1467-8551.12222
Publication status	Published - 11 Jul 2017

Keywords

Chief Executives
Human Capital
Financial Performance
Insurance
UK

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1111/1467-8551.12222

Cite this

@article{27358bf733c542b1a270fbf28852dcef,

title = "Do chief executives' traits affect the financial performance of risk-trading firms? Evidence from the UK insurance industry",

abstract = "We examine the effects of four key dimensions of Chief Executive Officers{\textquoteright} (CEOs) traits on six financial performance metrics using panel data for 1999-2012 drawn from the United Kingdom's (UK) property-casualty insurance industry. We find that CEO insurance experience and CEO financial expertise enhance financial performance, while two other CEO traits - power and age are generally not significant. Our results thus reinforce the importance of CEO insurance industry expertise and CEO financial expertise in the management and trading of risks. Our results have potential commercial and policy implications.",

keywords = "Chief Executives, Human Capital, Financial Performance, Insurance, UK",

author = "Michael Adams and Wei Jiang",

year = "2017",

month = jul,

day = "11",

doi = "10.1111/1467-8551.12222",

language = "English",

volume = "28",

pages = "481--501",

journal = "British Journal of Management",

issn = "1045-3172",

publisher = "John Wiley & Sons Ltd",

number = "3",

}

TY - JOUR

T1 - Do chief executives' traits affect the financial performance of risk-trading firms? Evidence from the UK insurance industry

AU - Adams, Michael

AU - Jiang, Wei

PY - 2017/7/11

Y1 - 2017/7/11

N2 - We examine the effects of four key dimensions of Chief Executive Officers’ (CEOs) traits on six financial performance metrics using panel data for 1999-2012 drawn from the United Kingdom's (UK) property-casualty insurance industry. We find that CEO insurance experience and CEO financial expertise enhance financial performance, while two other CEO traits - power and age are generally not significant. Our results thus reinforce the importance of CEO insurance industry expertise and CEO financial expertise in the management and trading of risks. Our results have potential commercial and policy implications.

AB - We examine the effects of four key dimensions of Chief Executive Officers’ (CEOs) traits on six financial performance metrics using panel data for 1999-2012 drawn from the United Kingdom's (UK) property-casualty insurance industry. We find that CEO insurance experience and CEO financial expertise enhance financial performance, while two other CEO traits - power and age are generally not significant. Our results thus reinforce the importance of CEO insurance industry expertise and CEO financial expertise in the management and trading of risks. Our results have potential commercial and policy implications.

KW - Chief Executives

KW - Human Capital

KW - Financial Performance

KW - Insurance

KW - UK

U2 - 10.1111/1467-8551.12222

DO - 10.1111/1467-8551.12222

M3 - Article

SN - 1045-3172

VL - 28

SP - 481

EP - 501

JO - British Journal of Management

JF - British Journal of Management

IS - 3

ER -

Do chief executives' traits affect the financial performance of risk-trading firms? Evidence from the UK insurance industry

Abstract

Keywords

UN SDGs

Access to Document

Fingerprint

Cite this