Does Leadership Matter? CEO Leadership Attributes and Profitability Under Conditions of Perceived Environmental Uncertainty

Founder-CEO Succession and the Paradox of Entrepreneurial Success

“…I received valid survey responses from 202 of the companies, or 20% of my initial list of candidate companies. The 20% response rate was reasonably high considering the sensitivity of the questions and the level of executives targeted (Finkelstein 1992, Waldman et al 2001. Of the respondents, 59% were the chairman, CEO, or CFO of the company, with an additional 21% being the vice president of human resources.…”

The interactive effects of belongingness and charisma on helping and compliance.

“…They display self-confidence and are able to inspire followers to transcend their own self-interest for the sake of the collective (e.g., Bass, 1985;House, 1977House, , 1996Shamir, House, & Arthur, 1993). Meta-analyses have shown that charismatic leadership correlates positively with a wide range of variables (e.g., Fuller, Patterson, Hester, & Stringer, 1996;Lowe, Kroeck, & Sivasubramaniam, 1996), including organizational commitment (e.g., Bycio, Hackett, & Allen, 1995), personal identification (Shamir, Zakay, Breinin, & Popper, 1998), and firm profitability (e.g., De Hoogh et al, 2004;Waldman et al, 2001). Previous research has also suggested that charismatic leadership elicits OCB from followers.…”

“…For example, De Hoogh et al (2004) found that the relationship between charismatic leadership and subordinates' positive work attitude was stronger in uncertain, unpredictable environments. In such a context, charismatic leaders can more easily generate appeal for their vision (Trice & Beyer, 1986;Waldman et al, 2001). Shamir and Howell (1999) suggested that such challenging and uncertain situations might offer more room for charismatic leaders to affect followers.…”

“…Our main aim in the current study was to expand existing literature by testing potential interactive effects of charisma and belongingness on helping and compliance. Several studies recently have suggested that the impact of charismatic leadership on followers is stronger in more challenging situations (e.g., De Hoogh et al, 2004;Waldman, Ramirez, House, & Puranam, 2001). In line with this, we expected that charismatic leadership would have stronger effects on helping and compliance when people feel less connected to the group.…”

Chief Executive Officer/ Managing Director Succession and Value Relevance of Accounting Numbers

“…There are previous studies (e.g. Fanelli & Grasselli 2006;Tosi, Misangyi, Fanelli, Waldman & Yammarino 2004;Waldman, Ramirez, House & Puranam 2001), which provided evidence that CEO's charisma affects the perceptions of external stakeholders and share prices. However, as reported by Dahyaa et al (2000), relatively small or insignificant share price response was observed in earlier studies (such as Ishak & Abdul Latif 2012;Setiawan et al 2011;Cools & van Praag 2007;Warner, Watts & Wruck 1988), whereby this situation is due to investors' uncertainty of whether the performance of the "new" management is better than its predecessor (Dahyaa et al 2000).…”