CEO Emotional Intelligence and Board of Directors Efficiency

Abstract

This article deals with the relationship existing between the emotional aspect and decision-making processes. More specifically, it examines the links between emotional intelligence, decision biases and effectiveness of the governance mechanisms. The primary purposes of this article are to: consider emotional intelligence like new research ideas that make important contributions to society; offer suggestions for improving manuscripts submitted to the journal; and discuss methods for enhancing the validity of inferences made from research. The article explains that the main cause of organization’s problems is CEO emotional intelligence level. I will use three models (linear regression and logistic binary regression) to examine this correlation: each model treats the relationship between emotional intelligence and one of efficiency criteria of the board. Emotional intelligence has been measured according to the Schutte self-report emotional intelligence scale with a high internal validity level. Regarding the four cognitive biases, they have been measured by means of a questionnaire comprising several items. As for the selected sample, it comprises of some one hundred and eighty Tunisian executives, belonging to sixty firms. Our results have revealed that the presence of a high emotional intelligence rate is not always positively correlated with the executives’ suggestibility with respect to behavioral biases. They have also affirmed the existence of a complementarity relationship between emotional intelligence and the board of directors.

Keywords

• Emotional intelligence
• Cognitive bias
• Corporate governance
• Board of directors