CEO Duality and Firm Distress

Kolias, Georgios; Arnis, Nikolaos; Kypriotelis, Efstratios

doi:10.4236/ojacct.2019.82002

Cited by 5 publications

(4 citation statements)

References 22 publications

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“…The duality variable was found with a positive sign and statistically significant at 95% confidence interval (pvalue: 0.021) confirming the results of other researchers such as Argenti(1976), Lakshan & Wijekoon(2012), Ciampi (2015), Nur Adiana Hiau Abdullah et al, (2016), Kolias et al, (2019), Muhammad M.Ma'aji (2019.Therefore, hypothesis (1) is accepted.…”

Section: Resultssupporting

confidence: 83%

“…The results have shown that corporate governance variables such as CEO duality significantly improve the forecasting ability of the model in predicting their financial failure. Kolias et al (2019) report that the likelihood of a business going bankrupt is increased if the Chairman of the company is also the CEO. Keasey and Watson (1987) , investigating the impact of non-financial variables on predicting the failure of UK small businesses, using the Logit model found that in 56% of the firms surveyed, managers were members of the same family and possessed a significant percentage of equity.…”

Section: Hypothesis (1): Ceo Duality Will Significantly Impact the Prmentioning

confidence: 99%

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Factors Affecting Business Failure of Small and Very Small Greek Family Enterprises

Arnis¹,

Karamanis²,

Kolias³

2020

AFR

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This article investigates the factors that lead small and very small Greek businesses to financial failure using financial and accounting ratios as well as corporate governance characteristics. Our data set consists of 136 small and very small firms that went bankrupt, which were matched with a sample of 472 non bankrupt enterprises formed by random selection based on year, sector and sub-sector determinants, from 2003 to 2014. The total firm-year observations for bankrupt and non bankrupt companies were 940 and 5,041 respectively. Applying a Logit model for panel data, the results showed a significant impact on the likelihood of small and very small firms failing due to factors such as the type and the amount of bank lending, the level of profitability, cash flows, and liquidity.The data also support a statistically significant correlation of the probability of failure with non-financial factors such as Duality on the Board and CEO gender.The results of this paper will be useful for both banks and managers of small and micro businesses.JELClassification: C33, G32, G33

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Section: Resultssupporting

confidence: 83%

Section: Hypothesis (1): Ceo Duality Will Significantly Impact the Prmentioning

confidence: 99%

Factors Affecting Business Failure of Small and Very Small Greek Family Enterprises

Arnis¹,

Karamanis²,

Kolias³

2020

AFR

Self Cite

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“…The turnaround of financially distressed firms has implications for CEO duality. Advocates of stewardship theory argue that duality brings unity of command and decision‐making clarity to face crises (Kolias et al, 2019). Agency theorists claim that avoiding duality improves board monitoring and mitigates CEO entrenchment.…”

Section: Theoretical and Empirical Debatementioning

confidence: 99%

Corporate governance and financial distress: A review of the theoretical and empirical literature

2022

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This study comprehensively reviews the theoretical and empirical literature on the relationship between corporate governance and financial distress and provides future research directions. We follow several different approaches by identifying, reviewing, and classifying related articles during the period 1985 to 2021. We used a set of keywords that included a combination of different terms of corporate governance and financial distress. Our review indicates that the majority of the studies based their arguments considering a single theory. The generalizability of different results in less explored countries is a serious concern and the one‐size‐fits‐all approach does not apply to the corporate governance‐financial distress relationship. Several different theories and confounding factors need consideration when examining the relationship between corporate governance and financial distress. Our review highlights future avenues by suggesting that studies should consider different governance attributes and test those factors in different and diverse contexts. Our review of the literature provides implications for academics and practitioners.

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“…Likewise, this study adapts the logistic regression technique in determining the measurement of the financial distress, which will be used as dependent variable in the second model of the study. Although, few studies have been conducted in an effort to examine the relation between CEOs attributes and financial distress likelihood from different context such as, (Muien, et al, 2022;Chowdhury& Doukas, 2022;Lawrence, et al, 2021;Yao, 2020;Kolias, et al, 2019;Rono,2018;Zahra, et al, 2018;Gottardo & Moisello, 2017;Boyallian & Ruiz-Verdu, 2017;Bhaiyat& Garrow, 2015). However, the studies came up with divergence views from their findings.…”

Section: Introductionmentioning

confidence: 99%

Ceo Attributes and Financial Distress Likelihood of Listed Deposit Money Banks in Nigeria: Moderated by Risk Committee Gender

Mohammed,

Okpanachi,

Yahaya

et al. 2024

gujaf

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Despite the series of reform policies initiated by financial authorities to create good atmosphere for effective and standard banking operation in Nigeria which could ensure their growth and survival, yet some of the bank suffered financial distress over the years due to some likelihood factors. Thus, this study examines the moderating role of risk committee gender on the effect of CEO age and gender on financial distress likelihood of listed deposit money banks in Nigeria for the period of fifteen years between 2007-2021. The population of this study consists of fourteen listed deposit money banks in Nigeria. Correlational research design was adopted to analyze the secondary data extracted from the annual audited financial statement of the banks, using logistic regression technique, based on Multi Discriminant Analysis approach of a modified Althman Z score model. The result depicted that CEO age, CEO gender and risk committee gender significantly influence financial distress likelihood negatively. Furthermore, risk committee gender significantly moderated the effect of CEO age and gender on financial distress likelihood. Thus, it is recommended that the board of the deposit money banks in Nigeria should initiate policy that will specifically; consider average aged bracket or young people in managing the affairs of their banks, which by implication will increase the survival tendency of the listed deposit money banks in Nigeria. On the hand, the 255 board of the listed deposit money banks should also, give priority to female in carrying out the affairs of the banks particularly at the top-ranking management positions considering their risk appetite on financial management. This will go a long way in reducing the rate or tendency for financial distress among the listed deposit money banks in Nigeria.

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CEO Duality and Firm Distress

Cited by 5 publications

References 22 publications

Factors Affecting Business Failure of Small and Very Small Greek Family Enterprises

Factors Affecting Business Failure of Small and Very Small Greek Family Enterprises

Corporate governance and financial distress: A review of the theoretical and empirical literature

Ceo Attributes and Financial Distress Likelihood of Listed Deposit Money Banks in Nigeria: Moderated by Risk Committee Gender

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