PurposeThis study aims to examine whether the internal locus of control, self-esteem and leadership self-efficacy can predict differences in self–other rating agreement on leader effectiveness. First, the authors predicted that the greater the internal locus of a leader the more their self-rating will be in agreement with others' rating of them (1a). Second, the authors proposed that the greater the self-esteem of a leader the more their self-rating will be in discrepancy with others' rating (1b). Third, the authors hypothesized that the greater the self-efficacy of a leader the more their self-rating will be in agreement with others' rating (1c).Design/methodology/approachTo test the hypotheses, multisource data were collected from 128 banking leaders (who responded about different aspects of leadership self-efficacy, internal locus of control, self-esteem and leadership effectiveness) and 344 subordinates (who rated their leaders' effectiveness in performing leadership tasks).Multivariate regression was performed by jointly regressing both leaders' self-ratings and subordinates' ratings as a dependent variable on internal locus of control, self-esteem and leadership self-efficacy as predictor variables.FindingsSelf-esteem of a leader the more their self-rating will be in discrepancy with others' ratings.Originality/valueThe study tried to investigate the leader-subordinate dis(agreement) on leaders’ effectiveness taking banking leaders in the Ethiopian Context. The finding of the results is crucial and important for leadership development programs.