Search Results (51)

This study investigates the relationship between CEO characteristics and firm performance across emerging and developed economies using both panel regression and machine learning techniques. Drawing on Upper Echelons Theory, we examine whether CEO age, tenure, gender, founder status, and appointment origin influence Return on Assets (ROA), Return on Equity (ROE), and market-to-book ratio. We apply the fixed and random effects models for inference and deploy random forest and XGBoost models to determine the feature importance of each CEO trait. Our findings show that CEO tenure consistently predicts improved ROE and ROA, while CEO age and founder status negatively affect firm performance. Female CEOs, though not consistently significant in the baseline models, positively influence market valuation in emerging markets according to interaction models. Firm-level characteristics such as size and leverage dominate CEO traits in explaining performance outcomes, especially in machine learning rankings. By integrating machine learning feature importance, this study contributes an original approach to CEO evaluation, enabling firms and policymakers to prioritise leadership traits that matter most. The findings have practical implications for succession planning, diversity policy, and performance-based executive appointments. Full article

Sub-Saharan Africa’s (SSA) corporate environment, like many emerging markets, is marked by institutional voids, weak oversight structures, and patriarchal leadership norms, which heighten the risk of real earnings management (REM). This study examines how CEO characteristics and audit committee gender diversity influence REM among listed manufacturing firms in 12 SSA countries from 2012 to 2023. Anchored in agency theory and Upper Echelon Theory, this study draws on 1189 firm-year observations and employs Pooled OLS, Random Effects, Fixed Effects, Feasible Generalised Least Squares (FGLS), and System GMM estimators. Findings show that female CEOs are consistently associated with lower REM, underscoring the ethical conservatism linked to gender-inclusive leadership. CEO ownership shows a positive and significant association with REM in System GMM, though findings vary across models, indicating potential institutional effects. The firm size is negatively and significantly related to REM in Pooled, RE, and FGLS models, but becomes nonsignificant in FE and System GMM, suggesting the role of external scrutiny may be sensitive to model dynamics. Leverage exhibits a positive and significant relationship with REM in most models, but turns negative and nonsignificant under System GMM, pointing to endogeneity concerns. Interaction effects and country-specific regressions affirm that governance impacts differ across contexts. Policy reforms should prioritise gender-diverse leadership and tailored oversight mechanisms. Full article

This study aims to empirically examine the effects of CEO characteristics (gender, nationality, multiple directorships) on the carbon emissions of UK-listed firms. We focus on understanding how these factors influence carbon emissions across the overall sample and within specific industry sectors grounded on the upper echelons and stakeholder theories. We employed a quantitative research design using quantile regression analysis. Our dataset comprises 295 UK-listed firms from the STOXX 600 Index of European-listed companies, covering the period from 1999 to 2023. Data were sourced from BoardEx, Refinitiv DataStream, annual reports, and sustainability reports. Our results indicate that foreign CEOs are associated with higher carbon emissions across the overall sample of UK-listed firms, across the three levels of carbon emitters within the sensitive industries, and within low- and high-level emitters within the non-sensitive industries. CEOs with multiple directorships were found to have a significant association with higher carbon emissions, likely due to divided attention and obligations. As for the CEO gender, it is noteworthy that it has an insignificant effect on reducing carbon emissions in low emission companies within sensitive industries. In contrast, female CEOs were associated with lower carbon emissions in medium-emitting firms within non-sensitive industries. This study contributes to existing literature by employing sensitivity analysis (sensitive sectors and non-sensitive). The study also employs a novel econometric technique, quantile regression, which provides a comprehensive understanding of the relationship between independent and dependent variables across different points of the distribution. Full article

This paper aims to investigate the relationship between governance structure, ownership structure, and financial leverage of corporations in the UK, with a special emphasis on the boardroom gender diversity. The study sample includes 484 UK firms from the FTSE All-Share Index for the period (2015–2023), with 4356 firm-year observations. The results show that CEO duality, gender diversity, managerial ownership, institutional ownership, and government shareholding are all positively associated with financial leverage, thus confirming the importance of these governance and ownership characteristics in determining capital structure policies. On the other hand, board size and the proportion of non-executive directors are not found to have a significant impact on financial leverage, which points to some room for improvement in UK board practices. In this regard, the study contributes to the governance-sustainability-finance nexus discussion by focusing on these dimensions in the UK corporate sector. As such, the findings of this study are important in providing policy recommendations for policymakers and corporate leaders and contribute to the ongoing wave of global corporate governance reforms and practical insights into enhancing governance frameworks at the firm level. Full article

As sustainability reporting and ESG disclosure gain global importance, understanding the factors influencing ESG outcomes becomes crucial for policymakers, investors, and corporate decision-makers. China, a major player in the global economy, has recently taken steps to align its stock exchanges with international ESG reporting standards. In this context, the study examines the individual and joint effects of digital transformation and CEO compensation on ESG performance, considering moderating factors such as firm size, state ownership, and CEO age and gender. The research employs a comprehensive dataset containing 16,205 firm-year observations from 2018 to 2022, combining financial data, ESG ratings, and a matrix of word frequencies related to digital transformation extracted from annual reports. The study adopts a firm-year two-way fixed effect model, utilizing panel data and control variables to address potential endogeneity concerns and unobserved firm heterogeneity. The findings provide evidence supporting the positive impact of digital transformation and CEO compensation on ESG performance. The level of digital transformation is positively associated with ESG performance. This relationship is stronger for larger firms and firms with older CEOs, while state-owned enterprises show mixed results compared to non-SOEs. However, the effect of CEO compensation and ESG performance is stronger for male CEOs. This study thus contributes to the growing literature on ESG performance, digital transformation, and executive compensation by providing insights into their relationships in the context of Chinese listed companies. Full article

This study investigates the impact of corporate governance characteristics on bank financial performance in Gulf Cooperation Council countries. The board characteristics include board size, board independence, board gender diversity, and CEO duality (CEO is also Board Chair), with bank size as the moderating variable. Sixty-six commercial banks from six Gulf Cooperation Council countries—Saudi Arabia, United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar—are examined from 2019 to 2023 using two-stage least squares and generalized method of moments econometric methods. Board size, board independence, and board gender diversity significantly increase return on assets and return on equity. The impact of CEO duality is mixed. The empirical findings show that CEO duality increases return on equity, with a non-significant impact on return on assets. Finally, results show that bank size moderates the impacts of board size, board independence, and gender diversity in boards on the financial performance of banks. Large banks significantly increase return on assets and return on equity due to the board characteristics examined, to a greater extent than small banks. Bank leaders should expand board membership, and add independent directors and women, to improve financial performance. Full article

This article examines how CEO compensation structure and CEO gender were associated with corporate social responsibility (CSR) performance in U.S. firms in the period between 2003 and 2013. Building on prior research in economics, finance, accounting, and management, which suggests gender differences in commitment to CSR, this study provides empirical evidence that female CEOs were positively associated with higher CSR performance. The analysis further shows that a higher proportion of equity in CEO compensation was positively associated with CSR, whereas higher proportions of cash bonuses and long-term incentive plans were negatively associated with CSR. Notably, a higher proportion of a cash bonus in CEO compensation further reduced CSR in firms led by female CEOs. These findings offer valuable insights for firms seeking to design executive compensation packages that align CEO behavior with the firms’ CSR objectives. This study contributes to the growing body of literature on CSR by providing empirical evidence on the role of CEO gender and compensation structure. Full article

Working capital is a strategic resource that not only enhances financial performance but also ensures the long-term sustainability of organizations, especially SMEs. In the context of evolving economic policies and the challenges of gender equity affecting Chilean companies, this study explores how economic policy risk (EPU) and CEO characteristics influence working capital, which are essential investments for sustainable growth. The analysis covers 12,839 SMEs from 2014 to 2019. Using a fixed-effects panel data model, the findings reveal that firms tend to increase their investment in working capital in response to rising economic policy uncertainty. However, the relationship follows a non-linear inverted U-shaped pattern, which suggests the existence of an investment optimum between working capital and the EPU. Considering the level of competition, companies increase their investment in working capital when the level of competition is higher. Regarding the gender and age of CEOs, it is observed that women invest less in working capital, as do young CEOs. These results underscore the importance of EPU, along with the gender and age of CEOs, as key factors in promoting sustainable working capital management. Full article

This study examines the impact of gender diversity in the positions of board commissioners, executive directors, and audit committee members on the financial performance of firms experiencing financial trouble. It also evaluates whether the presence of a CEO with multiple responsibilities moderates this relationship. The analysis encompassed 224 publicly traded companies from the non-financial sector, spanning the years 2012 to 2021. The study employed the dynamic panel model system GMM to address issues of endogeneity, simultaneity, and heterogeneity in the data. The findings indicate that the presence of women on supervisory boards and in senior positions has a substantial impact. Companies with a higher number of female board members have reduced financial hardship among Malaysian listed enterprises. Female directors exhibit a greater level of caution and risk aversion while participating in management choices, which is a significant conclusion. Research indicates that the majority of financial variables are inherently endogenous, so dynamic models are better suited for analyzing the interaction between these variables. This study also presents the notable correlation between gender diversity on boards of management, CEO duality, and financial difficulty. Full article

This paper investigates the effects of such CEO characteristics as gender, age, and education on the CEOs’ risk-taking behavior during periods of economic policy uncertainty. The paper utilizes Execucomp, BoardEx, and Compustat data from 2005 to 2017 in order to give a novel perspective on how CEO characteristics may provide differing risk-taking positions when faced with varying levels of uncertainty. The results offer robust evidence that older CEOs generally take less risk—regardless of the level of economic policy uncertainty. However, more educated CEOs take less risk only during economically uncertain times. The results also indicate that while female CEOs tend to be younger and have lower levels of education, gender does not provide a significant difference in risk-taking behavior during periods of economic policy uncertainty. Furthermore, we do not find any significant effect of insider status or corporate governance variables on CEO risk-taking under economic policy uncertainty once gender, age, and education are controlled for. Full article

Practicing ESG concepts is considered a viable way to achieve sustainable development for enterprises and is an important contributor to realizing high-quality economic development. This paper builds on the upper echelons theory, which posits that a company’s strategic decisions are influenced by the cognitive perceptions and values of its CEO. Based on the data of Chinese A-share listed companies from 2009 to 2021, this paper empirically examines the impact of CEOs’ green, academic, and political experiences on corporate ESG performance through multiple regression analysis. This study found that CEO experience has a significant impact on corporate ESG performance: rich green, academic, and political experience promotes corporate ESG performance. A stepwise regression test found that CEO experience drives corporate ESG performance by improving corporate green innovation and alleviating financing constraints. Further analysis showed that the contribution of CEO experience to ESG performance is more pronounced for firms with younger CEOs, non-state-owned enterprises, and high-polluting industries, although CEO gender is insignificant. The findings of this study provide important policy implications to improve ESG responsibility. Full article

This paper identifies the CEO characteristics that have an impact on the performance of family businesses listed in the Euronext in the post-COVID 19 period. CEO characteristics are evaluated on two dimensions, i.e., personal characteristics and corporate governance mechanisms. A sample of 137 firm-year observations from Portugal, Luxembourg, the Netherlands, Ireland, France, and Belgium was chosen. CEO attributes of age, gender, education, and family membership were combined with corporate governance mechanisms of ownership concentration, CEO duality, CEO directorships, and CEO tenure, to predict return on assets and return on equity, using OLS regression. GMM estimation and Two-Stage Least Squares were employed to establish the robustness of the results. Among CEO personal characteristics, CEO family membership has a positive impact on return on assets, and a positive impact on return on equity. Among corporate governance mechanisms, CEO duality had a negative impact on return on assets, and a negative impact on return on equity. CEO ownership, and CEO tenure had a positive impact on return on assets, and a positive impact on return on equity. This paper’s value lies in its evaluation of the under-researched area of family businesses of Euronext-listed firms. It can be used by family businesses in the region, for the selection and training of CEOs to fulfill the goal of achieving superior financial performance. Full article

This paper examines the relationship between CSR activities and innovation performance with the moderating effect of CEO gender in the U.S. market. This paper provides evidence about the relationship between CSR and innovation performance from the resources-based views by replacing the common measurements of innovation and R&D expenditures with the number of patents and citations to better measure the innovation quality rather than quantity. The current paper verifies the relationship between CSR and innovation in S&P 500 U.S. listed companies and fills the gaps in the current research on the moderating effect of CEO gender on this relationship. The paper analyzed the panel data for 1204 observations from various databases (Compustat, KLD, U.S. patents by words and Excompustat) from 2014 to 2018. Specifically, the number of patents and citations is set as the measurement of the explanatory variable; innovation performance and CSR scores from KLD are treated as the dependent variable and the proportion of female directors in the top management as the method of moderating indicator. The result in this paper shows a positive correlation between CSR and innovation performance in the U.S. At the same time, the moderating effect of CEO gender has an insignificant impact on this relationship. The findings suggest that the female CEOs do not have a positive relationship with corporate innovation. These results will help companies realize the importance of CSR activities and how to balance gender diversity in their strategies. Full article

Gender diversity is increasingly recognized as a critical element in corporate management. However, existing research on its impact on firm performance demonstrates inconsistency in a global context. This study employs 1990 publicly listed Japanese companies from 2006 to 2023 and examines the effect of board gender diversity on firm performance in Japan. Findings from the fixed-effects regression model revealed a significant negative impact of board gender diversity on firm performance. This adverse correlation is more pronounced in smaller firms, those with greater leverage and reduced institutional ownership, and regulated and consumer-focused industries, particularly pre-COVID-19. The detrimental impact of board gender diversity on firm performance is transmitted via corporate social responsibility and firm innovation instead of board independence or CEO duality. Notably, the two-stage least squares estimation addresses potential endogeneity, employing an equal opportunity policy as an instrumental variable. Moreover, the robustness of our results is affirmed via the substitution of return on equity for return on assets as an indicator of firm performance. Lastly, our analysis does not reveal a U-shaped nonlinear relationship between board gender diversity and corporate performance. As Japan progressively promotes women’s participation in corporate governance, this research bears significant implications for corporate leaders, investors, and policymakers in Japan. Full article

Earlier research has shown that the makeup of the corporate board is a crucial predictor in meeting stakeholder accountability expectations through voluntary Corporate Social Responsibility (CSR) disclosure. Though scholars have identified substantial relationships between board composition and CSR disclosure, the majority of their focus has been on the ‘quantity’ of CSR disclosure rather than the ‘quality’. Therefore, the present study considers the association of board characteristics (such as gender diversity, independence, female chairperson or/and female CEO, and board size) and the quality of CSR disclosure of the top 100 Pakistan Stock Exchange (PSX)-listed companies. We conducted content analysis of secondary Corporate Governance (CG) and CSR data extracted from the annual reports of PSX-listed companies across ten industrial sectors from the period 2017 to 2018. Our empirical investigation through univariate and multiple regression analysis with ordinary least squares (OLS) techniques revealed that all the board characteristics potentially had a significant association to lower CSR disclosure quality. Using the 2SLS regression model, we addressed the endogeneity issue of board characteristics and found robust results. One of the important implications of our findings is that policymakers and regulators in developing countries like Pakistan should review the value of board qualities as outlined in CG principles and develop stronger mechanisms to improve numbers of female directors and nonexecutive directors’ independence. We acknowledge several research limitations, including the study time period and selected board characteristics. While our study has provided some understanding of the association of board characteristics with CSR disclosure quality of PSX-listed companies, several research gaps still need to be addressed. Future investigators should examine this association through the pre-COVID-19 and post-COVID-19 contexts and the inclusion of a systems theory perspective. Full article