Transformational leadership and performance

We examine the relations between transformational/transactional leadership and performance indicators of 20 different banks. Leadership behavior is measured by the Multifactor Leadership Questionnaire (MLQ), which is used for the first time in the German-speaking area. The psychometric quality of the German MLQ is analyzed. This is the first empirical study that relates leadership behavior to objective (short- and long-term) performance indicators without any qualitative or subjective influence. Objective performance measures take into account customer features and local market conditions, and show whether reasonable targets are over- or underperformed. We find support for the hypothesis that transformational leadership affects performance over and above transactional leadership.
LISREL, reliability analysis