Top management characteristics and performance of financial companies: The role of women in the top management

Abstract

The top management (TM) is very important to the company. It is concerned with planning, directing, monitoring results, and adjusting strategic plans. This research intends to investigate the connection between TM characteristics and financial company performance. Specifically, this research explores the role of women in this relationship. The sample of the study is 368 firm-year-observations from the listed financial sectors in Saudi Arabia for the 2014–2021 years. The ordinary least squares (OLS) regression analysis is used to determine if TM characteristics have an impact on firm performance. The moderating effect of women in TM on the connection between TM qualities and performance is also tested in this research. This research confirms the primary theories by using attentional tests in conjunction with additional data. We discover that the size of TM has a statistically significant detrimental impact on performance according to the major models. We also find the significant effects of accounting and finance experience of TM, professional certificate of TM, education level of TM, and women in TM on performance. Further analysis reveals that omen in TM has a moderator effect on TM characteristics and company performance. The study contains new empirical data to comprehend how management- and governance-specific elements impact the effectiveness of performance in Saudi Arabia enterprises. In addition, the representation of women in TM has an impact on the association between TM characteristics and performance.