This study investigates whether busy CEOs are associated with lower firm performance, and if this relationship is moderated by firm growth, CEO tenure and corporate governance practices in Indonesia. This study uses 876 firms-year observations from 268 firms listed on the Indonesia Stock Exchange (IDX) for the period spanning 2014 to 2017. We find that busy CEOs are associated with lower firm performance. This negative relationship is stronger in firms with high growth and when busy CEOs have shorter tenure. We also show that corporate governance practices have no impact on the negative relationship between CEO busyness and firm performance. For firms and shareholders, our findings indicate that it is not a good idea for CEOs to hold two or more outside directorships, particularly in the early years of taking up their CEO position. Our results suggest that restrictions on CEO busyness would be beneficial to shareholders.

This study aimed to analyze the relationship between busyness, tenure, and the frequency of CEO meetings and corporate social responsibility (CSR) disclosure. This study used 624 observations from 78 companies listed on the Indonesia Stock Exchange and the Global Reporting Initiative (GRI) database for the 2010–2018 period. This study indicated that companies with busy CEOs or CEOs with long tenure produce fewer CSR disclosures. On the other hand, companies with CEOs who frequently attend board meetings generate more CSR disclosures because they can absorb a lot of useful information to address the changing social and environmental issues. Companies can limit the activities and tenure of the CEO and increase the awareness of the CEO to attend board meetings to encourage the firm’s sustainability. Companies with busy CEOs and long tenure result in less CSR disclosure. Furthermore, the frequency of CEO meetings can enhance CSR disclosure.

This study examines how the research and development (R&D) investments of listed companies in Indonesia are influenced by the educational characteristics of their CEOs and CFOs. This study uses 368 observations from 150 listed companies on the Indonesian Stock Exchange for the period 2010 to 2015. We find that CEOs with higher educational levels invest more in research and development. This is consistent with more education instilling a longer-term perspective on corporate managers. We also find that CFOs with accounting certifications invest less in R&D, consistent with the risk-adverse nature of the accounting profession. For companies and shareholders, our findings indicate the need for a greater understanding of the factors associated with R&D investments in Indonesia and other developing markets. Particularly, factors related to the background experience of CEOs and other executives, whose characteristics can have a real impact on the R&D investment decisions of firms. Our results show that the education of CEOs and CFOs is associated with their investment decisions in research and development. Thus, different education backgrounds create a bias for or against R&D investment in Indonesian firms.

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