CEO's personal characteristics, ownership and investment cash flow sensitivity: Evidence from NYSE panel data firms

Mohamed, Ezzeddine Ben; Souissi, Mohamed Naceur; Baccar, Amel; Bouri, Abdelfettah

doi:10.1016/j.jefas.2014.10.002

Cited by 19 publications

(10 citation statements)

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“…Kimberly and Evanisko (1981) found no significant association between various education fields and different levels of innovative investments. However, Mohamed et al (2014) and Malmendier and Tate (2005a) found that CEOs with financial education are less prone to irrational conduct as they understand business markets and macroeconomic policies. These CEOs help firms to reduce average cost as they manage the cost of finance effectively.…”

Section: Ceo Financial Education Investment Decisions and Firm Performancementioning

confidence: 99%

“…One of the imperative reasons for firm performance is corporate investment policy; therefore, it is also worth answering: what factors might affect firms' investment decisions. Moreover, in traditional financial literature, the relation between CEO attributes and corporate decisions has seen less attention (Mohamed et al, 2014). The two clarifications used in the traditional finance literature for investment decisions are agency cost (Jensen & Meckling, 1976) and asymmetric information (Myers & Majluf, 1984).…”

Section: Introductionmentioning

confidence: 99%

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CEO attributes, investment decisions, and firm performance: New insights from upper echelons theory

et al. 2021

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The study examines the role of a CEO in enhancing a firm's performance through the mediating effect of investment decisions in the emerging economy of Pakistan. Distinctly, fixed‐effects panel regression method is employed to examine the said nexus of nonfinancial firms listed at the Pakistan Stock Exchange. It is empirically unearthed that CEO attributes, namely, age, tenure, ownership, financial education, and career experience, are positively related to firm performance in general and capital investment decisions in particular. Second, capital investment decisions partially and significantly mediate the nexus between CEO attributes and firm performance with few exceptions that confirm the theoretical implications of upper echelons theory in an emerging economy context.

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Section: Ceo Financial Education Investment Decisions and Firm Performancementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

CEO attributes, investment decisions, and firm performance: New insights from upper echelons theory

et al. 2021

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“…The presence of independent directors on the board is one of the most interesting debates in recent corporate governance studies (Ben Mohamed et al , 2014b). In the principal–agent approach, they contribute to the board by minimizing managerial opportunism, or majority shareholders power (Baccar et al , 2016).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Determinants of technical efficiency of Islamic banks in GCC countries

Mohamed

Meshabet

Jarraya

2021

JIABR

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Purpose This study aims to discuss the determinants of Islamic banks’ efficiency. It tries to explore the source of Islamic banks’ inefficiencies to propose solutions to guarantee an acceptable level of technical efficiency of such banks in Gulf Cooperation Council (GCC) countries. Design/methodology/approach To achieve this objective, the authors use a parametric approach, especially, the stochastic frontier approach, using production function and panel data analysis. The authors apply a package Frontier 4.1 for the estimation process, which is composed of two principal steps. In the first step, the authors estimate Islamic banks’ efficiency scores in different GCC countries based on an output distance function. In the second step, the analysis highlights the impact of managerial-specific education on Islamic accounting and finance, scarcity of Sharīʿah scholars, the board independence and chief executive officers’ (CEOs) duality on GCC Islamic banks’ efficiency. Findings This study’s results document that managerial-specific education on Islamic accounting and finance and the board of directors’ composition, especially, the board’s independence, can largely explain the technical efficiency scores of Islamic banks in GCC countries. Especially, the authors find evidence that managerial-specific education is negatively associated with the inefficiency term. The coefficient of the Sharīʿah scholar’s variable has a positive sign indicating that the more there are Sharīʿah experts, the more the bank is efficient. In addition, CEOs’ duality seems to have no significant effect on GCC Islamic banks’ efficiency. Practical implications GCC Islamic banks need to improve the presence of independent members on the board of directors. In addition, these banks are invited to count more on Sharīʿah auditors and educated staff characterized by a high level of competency in the domain of Islamic banking and finance. Originality/value To the best of the authors’ knowledge, this is the first study that highlights the effect of managerial-specific education in Islamic accounting and finance and scarcity of Sharīʿah scholars on Islamic banks’ efficiency.

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“…In the last five years there is a wave of study concentrating on the effect of managers, as well as auditors, education on their management style (Schoar, 2003;Ben Fatma et al, 2015;Ben Mohamed et al, 2012, 2014a, 2014b, Baccar et al, 2013, Ben Mohamed and Jarboui, 2016. The financial and accounting expertise can limit routine earnings management, including lower abnormal accruals and higher accrual quality (Carcello et al, 2006).…”

Section: The Audit Committee Financial and Accounting Educationmentioning

confidence: 99%

On the effect of audit committee characteristics on corporate governance good practices index. Fresh evidence from Sudan listed firms

2019

Aust. J. Basic & Appl. Sci

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The paper aims to study the effect of audit committee characteristics on the effectiveness of corporate governance practices among Sudanese public firms. We use a survey to construct an index of corporate governance practices effectiveness and an OLS regression method was used in order to test the effect of the main audit committee characteristics namely, the committee size, the committee experience, the committee education and the committee professional certificates on corporate governance good practices. The effect of auditors' age on corporate governance practices effectiveness was also discussed.

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CEO's personal characteristics, ownership and investment cash flow sensitivity: Evidence from NYSE panel data firms

Cited by 19 publications

References 30 publications

CEO attributes, investment decisions, and firm performance: New insights from upper echelons theory

CEO attributes, investment decisions, and firm performance: New insights from upper echelons theory

Determinants of technical efficiency of Islamic banks in GCC countries

On the effect of audit committee characteristics on corporate governance good practices index. Fresh evidence from Sudan listed firms

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