Why Do We Need to Examine Leadership Concepts and Styles in Finance? Literature Overview

Nikita  Kurdyukov

doi:10.17323/j.jcfr.2073-0438.16.4.2022.135-143

Nikita Kurdyukov HSE University, Moscow, Russia https://orcid.org/0000-0001-6784-3369

DOI: https://doi.org/10.17323/j.jcfr.2073-0438.16.4.2022.135-143

Keywords: leadership, leadership concepts, leadership styles, transformational leadership, management, managers’ personal characteristics, company performance

Abstract

In the contemporary world, leadership concepts are associated with managerial literature. As a rule, scholars define a leader as a person with a certain set of positive characteristics that enable them to lead people and contribute to the successful development of a company. However, the concept of financial efficiency has to be factored into the effective development of a company. At the same time, personal characteristics of top managers, such as overconfidence, narcissism, excessive risk-taking, usually have a negative connotation in financial literature. This review includes a study of the development of various leadership concepts in management-related literature. The leader’s main personal characteristics are highlighted according to the literature. It also explores the relationship between the concepts of a leader and a manager. The literature devoted to the relationship between the concept of a transformational leader and company performance has also been studied. The key conclusion of this literature review is that certain personal characteristics of top managers can have a positive effect on a company’s performance if they are considered from the point of view of transformational leadership. This confirms the need for a deeper study of the relationship between managers’ personal characteristics and a company’s financial efficiency, especially in the context of sustainable development and the concept of transformational leadership.

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