CEO characteristics and firm performance: evidence from private listed firms in China

Rahman, Jahidur Md; Chen, Xianxian

doi:10.1108/cg-01-2022-0004

Cited by 12 publications

(16 citation statements)

References 70 publications

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“…These advantages make them likely to generate better performance than younger CEOs. This result supports the prior studies of Cheng et al (2010), Peni (2014), Naseem et al (2020), Rahman and Chen (2023) and Pham (2023). However, CEO age was also found to have a significantly negative association with Tobin’s Q measures of market-based firm performance.…”

Section: Resultssupporting

confidence: 89%

“…CEO age has a positive effect on current and future performance (Rahman and Chen, 2023;Naseem et al, 2020). Naseem et al (2020) show that after a certain age, the influence on performance declines.…”

Section: Hypotheses Developmentmentioning

confidence: 98%

“…Older CEOs implement less risky investment policies and therefore make minor investments in research and development (Rahman and Chen, 2023). They may be less eager or able to study and incorporate new information (Wang et al , 2016).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

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CEO characteristics and firm performance: evidence from a Southeast Asian country

Suherman

Mahfirah

Usman

et al. 2023

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Purpose The purpose of this study was to investigate how chief executive officer (CEO) characteristics, including age, education, nationality and particularly gender, influence firm performance in a developing Southeast Asian Country (Indonesia). Design/methodology/approach The study uses balanced firm-level panel data for 203 nonfinancial companies listed on the Indonesia Stock Exchange from 2010 to 2020. Return on assets, return on equity and Tobin’s Q were used to measure firm performance. The data were analyzed using panel data regression analysis, including a fixed effects model with clustered standard errors. Findings The results indicate that female CEOs, education and nationality enhance firm performance, while CEO age can either improve or reduce firm performance. Numerous robustness checks were performed; the results were consistent with those in the main analysis. Research limitations/implications Individual characteristics should be considered when appointing CEOs. Some CEO characteristics enhance firm performance. Female CEOs bring new perspectives, while older CEOs’ longer experience adds a competitive advantage. More educated CEOs have a better ability to deal with challenging intellectual activities, and CEOs from foreign countries better understand international market regulations. However, some characteristics may reduce firm performance, for example, older CEOs are more conservative and unable to adapt to changing business environments. Originality/value This study contributes to corporate governance studies by synthesizing CEO characteristics and investigating their relationship with firm performance. Moreover, it emphasizes that developing countries such as Indonesia have different economic, legal, social and cultural environments than developed countries, especially Western countries.

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Section: Resultssupporting

confidence: 89%

Section: Hypotheses Developmentmentioning

confidence: 98%

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CEO characteristics and firm performance: evidence from a Southeast Asian country

Suherman

Mahfirah

Usman

et al. 2023

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“…Agency theory supports the presence of women on executive boards; however, it provides a limited view of the presence of women as chairmen of executive boards (Boyd et al, 2011;Ramdani et al, 2023). In this context, existing empirical literature shows that female executive board chairmen are less likely to improve the performance of nonfinancial companies (Rahman and Chen, 2023;Kaur and Singh, 2019). However, the presence of women as chairmen of executive boards in the banking sector tends to be associated with higher performance.…”

Section: 24mentioning

confidence: 99%

Ownership structure, board characteristics, and performance of Indonesian Islamic rural banks

Mai,

Nansuri,

Setiawan

2024

IMEFM

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Purpose This study aims to examine the influence of ownership structure and board characteristics on the performance of Indonesian Islamic rural banks (IRB) using the system generalized method of moment model. Design/methodology/approach This research uses Indonesian IRB unbalanced annual panel data from 2016 to 2022. IRB performance is measured by return on assets (ROA), return on equity (ROE) and nonperforming financing (NPF). The ownership structure is represented by controlling shareholders, ownership of the board of directors (BD) and ownership of the board of commissioners (BC). Meanwhile, board characteristics are represented by the size of the BC, the proportion of female board directors and female president directors. Findings The results show that the ownership structure and board characteristics play an important role in improving the IRB’s performance. Technically, the results show that the size of the BC and the ownership of the BD increase all IRB performance measures. Female president directors and controlling shareholders improve IRB’s performance as measured by ROA and ROE. Women’s boards of directors improve IRB performance as measured by NPF. Meanwhile, the ownership of the BC does not show its effect on all IRB performance measures. Research limitations/implications This study fills a literature gap on the influence of ownership structure and board characteristics on IRB Indonesia’s performance. In addition, it adds understanding and insight for Islamic bank regulators, management and IRB depositors in Indonesia. Originality/value To the best of the authors’ knowledge, this study is one of the first to provide an empirical survey on the influence of controlling shareholders and board characteristics on IRB performance, particularly in Indonesia.

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“…This is measured by estimating the number of overlaps with other directors through employment, leisure activities and education (Fracassi and Tate, 2012). While prior studies (Rahman and Chen, 2022) on networks have mainly examined the implications of a director's networks for firm governance and performance, however little attention has been given to whether the board considers CEO network in deciding to replace a poorly performing CEO. On the one hand, it is argued that the networks and connections acquired by the CEO over the years constitute an important resource to the firm and a valuable human capital to the CEO (Zang et al, 2022;Miranda-Lopez et al, 2019).…”

Section: Chief Executive Officer Network Sizementioning

confidence: 99%

Firm performance and CEO turnover: the moderating role of CEO attributes

Chijoke‐Mgbame

Boateng

Mgbame

et al. 2023

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Purpose This study aims to examine the effects of firm performance on chief executive officer (CEO) turnover and the moderating role of CEO attributes on the firm performance–CEO turnover relationship. Design/methodology/approach Probit regressions were used to examine the relationship between various CEO attributes and CEO turnover and the moderation effect of firm performance on the CEO attributes–CEO turnover relationship. The sample comprises firms from the FTSE 350 Index covering the period 1999–2018. Findings The results indicate that firm performance negatively and significantly impacts CEO turnover. Further analysis reveals that selected CEO attributes, namely, CEO internal experience, CEO network size and CEO age, moderate the relationship between firm performance and CEO turnover. Specifically, CEO internal experience and performance combine to reduce the likelihood of CEO turnover. However, CEO network size and age when combined with firm performance increase the likelihood of CEO turnover. Practical implications The results imply that boards should pay more attention to CEO attributes in their decisions to hire and fire executive managers as these factors may affect a wide variety of firm outcomes. Originality/value This paper makes key contributions to the CEO turnover and corporate governance literature by providing evidence of key factors other than performance that can affect the CEO dismissal decision. Specifically, this study shows that CEO attributes such as CEO internal experience, CEO networks and CEO age far outweigh the importance of performance as a factor influencing CEO turnover decisions.

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CEO characteristics and firm performance: evidence from private listed firms in China

Cited by 12 publications

References 70 publications

CEO characteristics and firm performance: evidence from a Southeast Asian country

CEO characteristics and firm performance: evidence from a Southeast Asian country

Ownership structure, board characteristics, and performance of Indonesian Islamic rural banks

Firm performance and CEO turnover: the moderating role of CEO attributes

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