Chief Executive Officer’s (CEO’s) Characteristics and Bank Performance: A Comparative Study of Islamic and Conventional Banks in Tunisia

Autor: NOURA Zaidi, Calandra Davide, Sadraoui Tarek
Jazyk: angličtina
Rok vydání: 2024
Předmět:
Zdroj: European Journal of Islamic Finance, Vol 11, Iss 2 (2024)
Druh dokumentu: article
ISSN: 2421-2172
DOI: 10.13135/2421-2172/8871
Popis: This study examines the impact of CEO characteristics on bank performance within the Tunisian banking sector, focusing on a dataset of 1,340 professionals spanning from 2018 to 2022. Specifically, we compare Islamic and conventional banks, analyzing CEO traits such as educational background and decision-making authority. Our findings reveal higher customer satisfaction levels in Islamic banks (75%) compared to conventional banks (45%). CEO educational background positively influences bank performance in both bank types, with variations in ideal backgrounds. Larger banks tend to perform better, and greater CEO decision-making delegation enhances performance, contradicting the New Institutional Theory. Additionally, the age and frequency of CEO-board meetings significantly affect conventional bank performance. At the same time, these variables are less significant in Islamic banks due to their smaller size and older CEO demographics. Overall, our research highlights the critical role of CEO characteristics in shaping bank performance. This study provides valuable guidance for organizational leadership and regulatory bodies seeking to optimize banking operations. Understanding the impact of a CEO's educational background and decision-making authority on performance underscores the importance of strategic leadership in navigating dynamic market conditions. These insights are crucial for fostering resilience and competitiveness within the Islamic and conventional banking sectors.
Databáze: Directory of Open Access Journals