Determinants of CEO Power and Characteristics of Managerial Profile: Implications for Risk-Taking in Listed Tunisian Firms

Abstract

This paper identifies the impact of CEO power on risk-taking in listed firms and supports the strategic role of CEO from his personal profile. It specifies the managerial characteristics; demographic and professional aspects with reference to the upper echelons theory. The structural CEO power is measured by the combination of two titles held by the CEO and their seat in the board of directors. The empirical results reveal that the manager holding a structural power taking risky decisions. More explicitly, the CEO as the only internal in boards shows the highest risk regardless of his position or competence.