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Personality differences may be a major reason of conflict, as well as the perception of conflict and preference for handling that conflict. This study aims to explore the role of personality traits in determining conflict and performance. The authors also studied the moderated mediated relationship between personality and performance through conflict and conflict management styles.

A field survey was conducted with a sample of 153 employees to test the hypotheses.

As hypothesized, agreeable persons perceive less conflict and extraverts are more likely to use integrating, obliging, compromising and avoiding styles. Emotionally stable people opt for integrating style whereas neurotics opt for dominating style. Conscientiousness, openness and emotional stability have a direct effect on performance, but the interactions between conflict and conflict management styles determine the relationship between personality traits and performance.

The cross-sectional nature of data and somewhat reliable coefficients for personality measures reduce confidence in the results. Future research should use different or multiple measures of personality. Personality traits may be explored in view of the degree of each personality trait or interactions between personality traits.

People are sensitive about engaging in conflict and handling conflict differently because of their personality characteristics. The personality traits should, therefore, be understood and considered for conflict experience, conflict management and performance.

The paper adds to management research by investigating the relationship between personality traits, conflicts, conflict management styles and performance.

This paper explores the connection between capital structure and financial performance within European listed firms. The primary objective is to demonstrate an inverse U-shaped relationship between these two variables and pinpoint an optimal debt-equity mix.

In this study, we adopt a dynamic modeling approach to investigate the relationship between a firm’s capital structure and financial performance. Drawing on well-established theories and prior empirical studies, our model examines 3,121 dividend-paying firms from 41 European countries over 14 years, from 2008 to 2021. To enhance the reliability of our findings, we employ two distinct estimation techniques: the fixed effect model (FE) and the system generalized method of moments (System-GMM).

This study reveals an inverse U-shaped relationship between the firm’s financial performance, measured by the return on equity (ROE) and its capital structure (total liability to total assets ratio). Furthermore, an optimal capital structure of about 29% is determined for all firms in the sample, and about 21%, 28% and 41% industry-specific capital structure for manufacturing, real estate and wholesale trade, respectively.

This paper contributes to existing knowledge by empirically determining an optimal capital structure for listed firms across various industries in Europe, which very few studies have attempted to do in the past. An optimal capital structure is an invaluable benchmark for managers and other stakeholders, informing their decision-making.