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Revisiting the Quiet-Life Hypothesis in the Banking Sector: Do CEOs’ Personalities Matter?

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  • Tu D. Q. Le

    (Faculty of Finance & Banking, University of Economics and Law, Ho Chi Minh City 700000, Vietnam
    Vietnam National University, Ho Chi Minh City 700000, Vietnam)

  • Dat T. Nguyen

    (Faculty of Finance & Banking, University of Economics and Law, Ho Chi Minh City 700000, Vietnam
    Vietnam National University, Ho Chi Minh City 700000, Vietnam)

  • Thanh Ngo

    (School of Aviation, Massey University, Palmerston North 4442, New Zealand
    University of Economics and Business, Vietnam National University, Hanoi 100000, Vietnam)

Abstract

This study investigates the relationship between market power and bank profitability, and the impacts of CEOs’ personality traits, in Vietnam from 2007 to 2020. The analysis of CEOs’ signatures is used to determine their characteristics. The findings support the quiet-life hypothesis, which suggests that the negative relationship between market power and bank profitability may depend on CEOs’ characteristics. More specifically, the results show that conscientious CEOs with market power tend to reduce bank profitability, and this effect is more pronounced for foreign-owned banks. Therefore, our findings have critical implications for bank management.

Suggested Citation

  • Tu D. Q. Le & Dat T. Nguyen & Thanh Ngo, 2024. "Revisiting the Quiet-Life Hypothesis in the Banking Sector: Do CEOs’ Personalities Matter?," IJFS, MDPI, vol. 12(1), pages 1-15, March.
    • Handle: RePEc:gam:jijfss:v:12:y:2024:i:1:p:28-:d:1360406
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    References listed on IDEAS

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    1. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
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