Journal of Management Research
Volume 22, Number 2 (July - December 2022)
ISSN: 0972-5814 Online ISSN: 0974-455X
CEO Tenure and Bank Diversification in Indonesia
Arifin Angriawan, Tyson Ang, Charles Rarick, and Wei He
| Abstract |
Research has catalogued the impacts of tenure of top managers on firm performance and strategic decision making. Previous studies have examined the impacts of top managers as teams or CEOs. The present study extends the literature by examining the impacts of CEO tenure on the Indonesian bank diversification. The empirical results of this study suggest that prior performance and CEO tenure negatively associate with diversification. The present study confirms that our understanding of the role of prior performance and tenure apply as well in the contexts of bank diversification and a national culture which is different from western countries where most of the previous studies took place. Furthermore, the non-significant moderating impact of prior performance on the relationship between CEO tenure and bank diversification may indicate the heightened effects of CEOs and national culture.
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