Are top managers important for firm performance and idiosyncratic risk? Evidence from sharia vs non‐sharia‐compliant firms in the UK and Pakistan. (29th May 2017)

• Record Type: Journal Article
• Authors: Kutan, Ali M.; Naz, Iram; Shah, Syed Muhammad Aamir
• Is Part Of: World economy. Volume 41:Number 3(2018)
• Page Start: 763
• Page End: 780
• Publication Date: 2017-05-29
• Subjects: idiosyncratic risk -- managerial financial styles -- return on assets -- return on equity -- sharia‐compliant firms -- stock returns; International economic relations -- Periodicals; 330
• DOI: 10.1111/twec.12511
• Languages: English
• ISSNs: 0378-5920

Abstract

Abstract: We examine the impact of top managers on performance and idiosyncratic risk of the sharia‐compliant firms in the UK and Pakistan by constructing a manager–firm matched panel data and then tracking the role of individual top managers across different firms. The results regarding the individual effects on performance by a particular firm show that there exists a significant difference for managers who move from a non‐sharia to a sharia‐compliant firm. However, this difference is not significant for managers who move from a sharia‐compliant firm to another sharia firm. Policy implications of the findings are discussed.