A Review of Chief Executive Officer Behavioral Aspects and Company Performance in Indonesia Literature

Abstract

his study aims to comprehend the aspects of CEO personality and behavior on company performance in Indonesia. This study uses a Systematic Literature Review (SLR), which involves an in-depth analysis of relevant literature topics. This study found that CEOs who hold ethical leadership and are committed to the principles of good governance tend to create a work environment that is transparent and with integrity. A work culture that values honesty and accountability motivate employees, increases shareholder trust, and contributes to the company's growth. Ethical leadership, integrity, and commitment to the principles of good corporate governance are considered to have a positive impact on company performance. Besides that, less ethical and self-interest-oriented behavior can have a negative impact. However, CEO behavior that is less ethical, authoritarian, or overly self-interest-oriented can have negative repercussions, including manipulation of financial statements and conflicts of interest. We concluded that the CEO has a significant role in influencing the performance of companies in Indonesia. The development of ethical leadership, integrity, and commitment to the principles of good corporate governance are key to achieving sustainable corporate performance. The role of a responsible and integrity CEO establishes a work culture oriented towards honesty, transparency, sustainable performance and long-term success of companies in Indonesia.