Importance of organisational factors and managerial power on Tunisian listed firms

This paper specifies the relationship between CEO power and organisational characteristics and examines their involvement on the firm’s performance. Moreover, this paper highlights the implication of managerial power on firm performance when CEO is involved in the appointment of new membership and at the same time in a shareholding of the firm. We select 39 Tunisian listed firms for the period of eight years (2000–2007) and we measure CEO power by Adams et al. (2005) index. According to empirical results, Tunisian firms are more performing when their CEOs are powerful. The results also confirm the weakness of the board attributes to enhance the firm performance when the Tunisian governance system explains largely this result.