Physical Characteristics of the Chief Executive Officer and Firm Accounting and Market-Based Performance

Rahman, Haseeb Ur; Ibrahim, Mohd Yussoff; Ahmad, Ayoib Che

doi:10.17576/ajag-2017-08-03

Cited by 11 publications

(9 citation statements)

References 43 publications

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“…FAGE has a significant negative impact on ROA that might have a rationale that sample firms could not adapt themselves as per the emerging challenges and new developments in the market which facilitate the introduction of substitutes for their products or decreased their market share. The findings are consistent with Rahman et al (2017b) who found that an increase in firms' age negatively affects their performance. FSIZE has a significant positive impact on firms' financial performance (ROA) which indicates that large firms have substantial assets the efficient utilization of which improves firms' financial performance (Haseeb Ur Rahman et al, 2017a).…”

Section: The Estimations Of Dkses and Pcses Reported Insupporting

confidence: 91%

“…For instance, some studies noted that age and ethnicity of the directors have positive impacts on firm performance by uplifting the quality of decision making (Anju, 2020;Ezeanyim, 2020;Jonson et al, 2020), while others documented that there is no or negative association between them (Pandey, 2020). The latter studies reported that heterogenic boards require more time and energy in reaching a consensus as compared to homogenous boards which are quick and good in making unanimous decisions (Hambrick & Mason, 1984;Haseeb Ur Rahman et al, 2017b). In addition to the communication problem, board members from the diverse background also have their personal or geographical interests which harm coordination, solidarity, consistency, integrity, and motivation of the board (Adams & Ferreira, 2009;Brown, 2016;Carter et al, 2010;Pandey, 2020).…”

Section: Introductionmentioning

confidence: 99%

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Different is Better: Does Difference in Age and Ethnicity of the Directors Matter for Corporate Performance in Malaysia?

Rahman

Zahid

Jehangir

2020

JAEBS

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The prior diversity-related literature is mostly dominated by the boardroom gender diversity of the top or large companies of the developed countries. Consequently, this study investigates the impact of the rarely investigated boardroom diversity-related dimensions like directors’ age and ethnicity on the financial performance of 360 randomly selected non-financial listed companies from a developing country - Malaysia from 2010 to 2014. The findings revealed that ethnic equality (the presence of directors from all the three major ethnicities of the country) on the board has a significant positive relationship with ROA and share price. However, directors’ age has a significant positive association with share price but it has an insignificant effect on ROA. The findings of this study provide important insights for the regulators, policymakers, and all other key stakeholders of the developing countries, especially Malaysia, where the corporate boards are mostly dominated by men of middle age from Chinese ethnicity.

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Section: The Estimations Of Dkses and Pcses Reported Insupporting

confidence: 91%

Section: Introductionmentioning

confidence: 99%

Different is Better: Does Difference in Age and Ethnicity of the Directors Matter for Corporate Performance in Malaysia?

Rahman

Zahid

Jehangir

2020

JAEBS

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“…A one-year lag of both the outcome variables (ROA and stock volatility) are also used as predictors to control the evident serial correlation and endogeneity in Models 1 and 2. The ROA is a commonly used accounting (Abdullah, 2014;Hahn and Lasfer, 2016;Ntim, 2015;Rahman et al, 2017Rahman et al, , 2016, while the stock volatility is a market-based commonly used firms' performance measure (Cardoso et al, 2019). The study uses a purely quantitative approach to a balanced panel data of 1,600 observations (320 firms for 5 years) from 2010 to 2014.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

Women directors and corporate performance: firm size and board monitoring as the least focused factors

Rahman

Zahid

2021

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Purpose This paper aims to examine the impact of women directors on corporate performance (CP) and the mediating role of board monitoring in their relationship. Design/methodology/approach The ordinary least squares with panel corrected standard errors are used as a primary estimator along with three other estimators to check the robustness of the estimations and address the potential endogeneity in a stratified random sample of 320 non-financial Malaysian companies listed on Bursa Malaysia (Stock Exchange) between 2010 and 2014. Findings It is found that women directors on the board not only improve firms’ return on assets but also reduce the volatility of their stocks. However, these findings are more applicable in small firms as compared to large firms. Besides, it is also noted the board monitoring significantly mediates the relationship between women directors and CP. Practical implications As the monitoring role of women directors improves CP, substantial efforts may be put in to increase their meritorious representation on the boards. The regulators could pay equal attention to the small firms. Additionally, the number of board meetings may also be increased for strengthening the monitoring abilities of the board to improve CP. Originality/value The study contributes to the existing literature, as little attention has been paid to the mediation of board monitoring in the nexus of women directors and CP in the past.

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“…Being a pilot of an Airplane, the CEO is responsible for improving and diminishing the financial performance of the bank. CEO does a vital job in a bank (Hambrick and Mason, 1984 ; Rahman et al, 2017 ), especially in choosing whether a corporation remains in a present market or changes to other targeted markets (Stoller, 2009 ). In this way, “swimming” or dropping of an organization relies upon CEOs (Westerberg et al, 1997 ).…”

Section: Introductionmentioning

confidence: 99%

“…In this way, “swimming” or dropping of an organization relies upon CEOs (Westerberg et al, 1997 ). It is reasonable to concentrate on CEOs as an investigation subject (Rahman et al, 2017 ). Numerous investigations have shown that the relationship between CEO military background (MTB) and Corporate performance.…”

Section: Introductionmentioning

confidence: 99%

The Effect of CEO on Bank Efficiency: Evidence From Private Commercial Banks

et al. 2021

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The main purpose of this study was to analyze the effects of Chief Executive Officer (CEO) Key attributes on the financial performance of banks. Current literature gives little attention to the important characteristics of CEOs, therefore, this paper investigates the effects of characteristics of CEOs, such as education, experience, nationality, military background (MTB), and political connectedness (PC), on the financial (return on assets) performance of listed private commercial banks in Pakistan. This research sample included 20 private commercial banks of Pakistan and used Secondary data that was derived from 2011 to 2020, which contained 200 sample observations. This paper used the Fixed effect model, Normality test, Breush–Pagan, white test, multi-collinearity, and Augmented Dickey–Fuller test to investigate the study hypotheses. The main results revealed that CEO MTB and PC significantly and positively affected the financial performance of the bank. It is also found that the CEO's education and Experience have a significant and positive relationships with bank profitability. In contrast, the nationality of the CEO has no significant relationship with the financial performance of the bank.

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Physical Characteristics of the Chief Executive Officer and Firm Accounting and Market-Based Performance

Abstract: Despite the key role of the Chief Executive Officer (CEO),

Cited by 11 publications

References 43 publications

Different is Better: Does Difference in Age and Ethnicity of the Directors Matter for Corporate Performance in Malaysia?

Different is Better: Does Difference in Age and Ethnicity of the Directors Matter for Corporate Performance in Malaysia?

Women directors and corporate performance: firm size and board monitoring as the least focused factors

The Effect of CEO on Bank Efficiency: Evidence From Private Commercial Banks

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