CEO Characteristics Research Articles

Corporate governance characteristics and involvement in ESG activities: current trends and research directions

PurposeThis study aims to conduct a comprehensive literature review to examine the relationship between corporate governance characteristics and firms’ engagement in environmental, social and governance (ESG) activities. The review focuses specifically on academic papers published in ranked accounting and finance journals.Design/methodology/approachThe analysis combines a structured literature review with citation analysis, topic modeling using a machine learning (ML) approach and a manual review of selected articles published between 2000 and 2021.FindingsThis paper contributes to corporate governance and ESG literature by conducting an in-depth review, offering a comprehensive analysis of the existing findings and identifying future research directions. From the reviewed literature, this paper proposes the following thematic areas: board characteristics, ownership structure and their impact on a company’s engagement in ESG activities; CEO characteristics and their influence on a company’s involvement in ESG activities; corporate governance and ESG as sources for transparency and legitimacy; internal and external assurance of a company’s involvement in ESG activities; and gender diversity and a company’s involvement in ESG activities.Originality/valueThe study provides a comprehensive understanding of corporate governance and ESG literature. The innovative combination of methods, including ML and manual techniques, enhances the ability to identify key research topics and uncover research directions in the field. Moving forward, this paper suggests several promising directions for future research, including examining the influence of emerging technologies on ESG reporting and assessing the impact of regulatory changes and context on the link between corporate governance and firms’ involvement in ESG practices.

The Role of CEO Characteristics in Enhancing Carbon Emission Disclosure: Evidence from Indonesia

This study aims to investigate the influence of CEO characteristics, namely gender, age, and education level, on the disclosure of carbon emissions in manufacturing companies listed on the Indonesia Stock Exchange. Data analysis was conducted through three main stages: classical assumption testing, descriptive statistics, and application of multiple linear regression. This data testing utilized the STATA 14.0 statistical tool to evaluate the influence of CEO characteristics on carbon emissions disclosure. This study's results show that female CEOs, older CEO age, and higher CEO education levels significantly increase corporate carbon emissions disclosure. Female CEOs tend to be more concerned about environmental welfare, while older and highly educated CEOs are more understanding and committed to transparency and corporate social responsibility. This study provides practical implications for companies considering executive characteristics to improve their social performance. In addition, the results also emphasize the importance of gender diversity and investment in education to improve carbon emissions disclosure practices.

A literature review on corporate governance and ESG research: Emerging trends and future directions

Extant research emphasizes that corporate governance (CG) significantly influences environmental, social, and governance (ESG) outcomes. This paper undertakes a content analysis and reviews 91 academic articles published in 41 journals over the past 14 years (2010-2023). We examine the role of CG in ESG outcomes by focusing on CG themes, ESG indicators, theories, countries, and empirical methodologies used to address endogeneity. The findings show that several factors collectively impact ESG outcomes positively. Such factors include female directors, institutional investors, independent directors, CEO characteristics, directors' compensation, and sustainability committees. Relatedly, the findings also suggest that family ownership may potentially exert a detrimental effect on ESG performance. Despite the burgeoning evidence on CG and ESG outcomes, we highlight several understudied areas, such as directors' ESG expertise in specific ESG-related sectors and CEO tenure. Furthermore, we call for more research focusing on non-financial firms, particularly in European countries. Given the current studies' reliance on archival methodologies, we encourage future research to adopt diverse approaches, such as qualitative and mixed research methods. Finally, we discuss several research avenues, identify gaps in the literature, and outline a future research agenda.

Effects of Working Capital Management on Small-Sized Businesses in Competitive Environments with Economic Policy Uncertainty—A Case Study Applied to Chilean Companies

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.

How the social dimension of ESG influences CEO compensation: Role of CEO and board characteristics

AbstractThis paper examines whether social disclosures impact CEO compensation considering various CEO and board controls. By categorizing CEO‐specific attributes into CEO duality, CEO academic diversity, and insider CEO, as well as including board size and board independence as board‐specific controls, the study tests their effects on CEO compensation. This research further explores whether board gender diversity moderates the association between social disclosures and CEO compensation. The paper uses a balanced panel dataset of 67 firms extracted from the NSE Nifty 100 ESG index and applies the panel‐corrected standard error (PCSE) model as a baseline methodology. The findings revealed that the environmental, social, and governance (ESG) disclosure score significantly impacted the CEO compensation, whereas social disclosure scores assessed independently failed to create a significant association with the same. Subsequent investigation also showed a significant positive relationship between the number of female directors on the board and CEO compensation. However, female directors on the board could not amplify the firm's social disclosure practices, leading to an insignificant impact on CEO compensation. While board independence, board size, ownership structure, and CEO duality significantly affected the above relationship, insider CEO status could not. Furthermore, robustness checks using the propensity score matching (PSM) and generalized method of moments (GMM) models were also conducted to test the validity of the above results. The findings of the work offer insights to help managers, organizations, and policy planners make decisions concerning women directors, social disclosures, and CEO compensation.

Executive pay restrictions, political promotion, and firm efficiency: Evidence from China

Using the mandatory reform in executive pay restrictions within Chinese state-owned enterprises (SOEs) as a quasi-natural experiment, we investigate the effects of compensation incentives and political promotion on firm efficiency. Our difference-in-differences analyses reveal that firm efficiency significantly decreases following the reform, and political promotion can attenuate this negative association. Firm risk-taking is a potential mechanism underlying this observed phenomenon. The negative relationship and mitigation effect are more pronounced for central SOEs and commercial class II SOEs. Furthermore, these findings exhibit variations based on distinctive attributes in compensation structures, CEO characteristics, and political promotion ranks. Overall, our study underscores the complementary roles of explicit and implicit incentives within SOEs, providing a strong rationale for government regulation and reform of executive compensation.

Overinvestment is ambitious or reckless? The answer from employees

This study identifies that CEO characteristics can drive overinvestment to superior ROA and stock return. We employ data from Glassdoor.com, a total of 755,541 reviews, to measure the CEO's characteristics. We find that, if CEOs are approved by their employees, overinvestment can spur firm development and boost future stock premiums. To address endogeneity concerns, we use the Fama-MacBeth regression and various standards for selecting valid reviews as a robustness test, yielding consistent results. Our results emphasize that overinvestment should be perceived as an investment style but not a reckless investment, and the impact depends on the CEO's capability and morality.

Exploring the moderating effect of family communication patterns on the family CEO characteristics – family firm internationalization relationship

This article explores the impact of family CEO characteristics on internationalization and how this relationship is moderated by family communication patterns. Drawing on family communication patterns theory, which states that family communication varies across two dimensions, i.e., family conversation orientation and family conformity orientation, we argue that early family communication shapes family CEOs’ behavior in later life and moderates the effect of family CEO characteristics on internationalization. Our results from a sample of 182 Belgian private family firms (FFs )show that family CEO education has a positive effect on the internationalization of FFs, but this effect decreases as the family conformity orientation increases. These findings make unprecedented and interesting contributions to upper echelon and family business research.

CEO characteristics and audit report lag: evidence from Egypt

CEO characteristics and audit report lag: evidence from Egypt

Deciphering CEO disclosure tone inconsistency: a behavioural exploration

PurposeThis research employs a behavioural approach to investigate the determinants of CEO disclosure tone inconsistency. By examining CEO characteristics and psychological attributes, the study aims to unravel the complexities underlying tone variations in Management Discussion and Analysis (MD&A) reports. Through this exploration, the research seeks to contribute to understanding ethical considerations in corporate communications and provide insights into the nuanced interplay between personal, job-related and psychological factors influencing CEO disclosure tone.Design/methodology/approachThe study utilises a dataset comprising 1,411 MD&A reports from 143 companies listed on the Tehran Stock Exchange between 2012 and 2021. Multiple regression analyses with year- and industry-fixed effects are employed to examine the relationships between CEO gender, tenure, duality, ability and psychological attributes such as narcissism, myopia, overconfidence and tone inconsistency. Data analysis involves MAXQDA software for analysing MD&A reports and Rahavard Novin software for document analysis, supplemented by audited financial statements.FindingsThe findings reveal significant relationships between CEO characteristics, psychological attributes and tone inconsistency. Female CEOs exhibit reduced tone inconsistency, contrasting with previous research trends. CEO tenure correlates negatively with tone inconsistency, whereas CEO ability shows a positive correlation, indicating a nuanced relationship with performance. However, CEO duality does not exhibit a significant association. Psychological attributes such as narcissism and myopia are positively associated with tone inconsistency, while no substantial connection is found with managerial overconfidence.Originality/valueThis research contributes to the inaugural exploration of CEO disclosure tone inconsistency through a behavioural lens, advancing measurement precision in the field. By delving into CEO characteristics and psychological attributes, the study offers unique insights into the roots of tone inconsistency. Applying comprehensive lexicon and phraseology enriches the methodological approach, fostering dialogue among diverse stakeholders and adding distinct perspectives to the discourse on ethical issues in business. Through its meticulous examination of behavioural underpinnings, this study becomes a catalyst for reflection, dialogue and progress in corporate communications and ethical considerations.

Tax avoidance, CSR performance and CEO characteristics: Evidence from developed and developing countries

We explore the association between tax avoidance, CEO characteristics, and corporate social responsibility based on environmental, social, and corporate governance (ESG) ratings, with a specific focus on financial firms in both developed and developing countries. Despite extensive literature on CSR and tax behavior, there is a gap in understanding how these elements interact within the financial sector across diverse economic environments. Using a dataset comprising 996 financial firms from 51 countries, spanning the period from 2002 to 2021, we find a significant negative association between ESG performance and tax avoidance for firms in developed countries, suggesting that firms in developed countries with higher ESG engagement tend to pay more taxes. The results in developed countries also indicate that governance and the social pillar are the factors contributing to the reduction of tax aggressiveness. On the contrary, our results reveal a significant positive relationship between CEO duality and tax avoidance for firms in developing countries. These results not only fill the existing research gap by providing empirical evidence in the links between ESG, CEO characteristics, and tax avoidance in the financial sector but also underscore the importance of institutional differences between developed and developing countries. Our results remain robust when using alternative estimators that control for heteroskedasticity and endogeneity. Our findings have important implications for policymakers and market participants, highlighting the need of a strong corporate governance and tax regulation that consider both ESG performance and CEO attributes.

CEO Characteristics, Ownership, and Earnings Management in Indonesian Public Listed Companies with Two-Tier Boards

CEO Characteristics, Ownership, and Earnings Management in Indonesian Public Listed Companies with Two-Tier Boards

Green Synthesis, Spectroscopic, Electrochemical and Antifungal Characteristics of Ni-doped CeO2 Nanoparticles

This study intended to synthesize Nickel-doped Cerium oxide (Ni-CeO2 NPs) nanoparticles using Pedalium Murex leaf extract. X-ray diffraction (XRD) was used to investigate the structure of the Ni-CeO2 NPs. The XRD measurements showed that the Ni-CeO2 NPs crystallized into the face-centered cubic system. The Ni(1%)-CeO2 and Ni(3%)-CeO2 NP’s crystallite sizes were between 47[Formula: see text]nm and 59[Formula: see text]nm. FTIR and Raman spectral studies were conducted to investigate the sample’s atomic vibrations and chemical bonding. Energy-dispersive X-ray study and field-emission scanning electron microscopy were performed to examine the surface texture and chemical assembly of the Ni-CeO2 NPs. UV–Vis DRS spectrum study was performed to ascertain the reflectance characteristics and bandgap of Ni-CeO2 NPs. The Ni(1%)-CeO2 and Ni(3%)-CeO2 NPs were found to have bandgaps of 2.73[Formula: see text]eV and 2.82[Formula: see text]eV, respectively. Electrochemical impedance spectroscopy and cyclic voltammetry were employed to explore the electrochemical nature of Ni-CeO2 NPs and their capacitive properties at various scanning rates. Using the agar well-diffusion technique, the antifungal activities of Ni-CeO2 NPs were assessed. The experimental findings illustrate the utility of Ni-CeO2 NPs for supercapacitor electrode material and healthcare applications.

The effect of technological overlap on acquisition premiums: moderating roles of target firm's technology clockspeed and industry munificence

PurposeDrawing on the literature on technological acquisition and the knowledge-based view , this study examines how technological overlap between acquiring and target firms influences acquisition premiums. We further explore how the resulting synergies are contingent on the dynamic characteristics of the target firm, specifically its technology clockspeed and industry munificence. Technology clockspeed indicates the pace of technological evolution, reflecting internal dynamic resources, while industry munificence represents the abundance of external resources. These boundary conditions illustrate the dynamics of synergies, explaining their moderation effects on acquisition premiums.Design/methodology/approachWe analyze a sample of 369 technological acquisitions by publicly traded U.S. firms between 1990 and 2011. To test our hypotheses, we used the ordinary least squares regression model with robust standard errors clustered by acquiring firms. In the robustness checks, we applied the generalized estimating equations to account for non-independent observations in our sample and verified that the results were robust to an alternative two-way clustering approach.FindingsWe suggest that a low level of technological overlap between an acquiring firm and its target firm leads the acquiring firm to offer a high acquisition premium because of the expected synergistic potential that evolves from combining two distant technological bases. We further find that this effect is contingent on the target firm's technology clockspeed and industry munificence. Specifically, the negative effect is amplified when target firms exhibit a rapid pace of technological evolution, whereas it is weakened when target firms operate in highly munificent industries characterized by robust growth and abundant resource flows.Research limitations/implicationsThis study has several limitations, but it offers opportunities for future research. First, our sample is limited to domestic acquisitions between U.S. publicly traded firms, which may restrict generalizability. Cross-border acquisitions could reveal different dynamics, as technology leakage and national security concerns might make technological overlap a more sensitive factor. Additionally, private firms were not included, and their distinct strategic considerations could provide further insights. Future research could explore post-acquisition data to validate these synergies and expand the scope to include international contexts and private firms for a comprehensive analysis.Practical implicationsOur findings highlight important implications for managers in technology sector acquisitions. This study underscores the need for a thorough evaluation of target firms to avoid misjudging synergies. Low technological overlap can heighten expectations for value creation, making it crucial for executives to accurately assess potential synergies to prevent overestimation. Managers should consider both internal resources and external industry conditions when evaluating synergies. Ultimately, these insights help managers offer informed prices that reflect true strategic synergies, adopting effective valuation practices to mitigate risks of financial overpayments and poor post-merger performance.Social implicationsThe social implications of our findings emphasize the broader impact of acquisition decisions on innovation and competition within the technology sector. By ensuring accurate valuation and avoiding overpayment, companies can allocate resources more efficiently, fostering sustainable growth and innovation. This diligent approach can reduce the risk of corporate failures.Originality/valueThis study makes two key theoretical contributions. First, it identifies technological overlap as a critical determinant of acquisition premiums in technological acquisitions, addressing gaps in the literature that focused on CEO characteristics and managerial attention. Second, it expands the theoretical framework by highlighting the dynamic nature of synergies, influenced by the target firm's technology clockspeed and industry munificence. By integrating both acquiring and target firm characteristics, this study provides a relational perspective on value creation, explaining why firms pay high premiums and offering a more comprehensive understanding of the strategic motivations in technological acquisitions.

Exploring the impact of ESG factors on corporate risk: empirical evidence for New York Stock Exchange listed companies

This paper aims to investigate the impact of influential ESG factors on risk, focusing on debt risk and liquidity risk. The influence on a sample of companies listed on the New York Stock Exchange belonging to the NYSE index is analyzed over a 10-year period, 2012–2021. The quantitative framework covers a multitude of indicators regarding debt, liquidity, corporate governance, the environment, CEO characteristics, performance, and other variables, and the research methodology uses the method of least squares to highlight their impact, using regression models with fixed and random effects, both linear and nonlinear. By estimating regression models, the empirical results confirm the hypotheses found in the existing knowledge stage that debt risk and liquidity risk are significantly influenced by asset profitability, the CEO duality significantly influences debt, while CEO gender diversity has a negative influence on corporate risk, specifically debt and liquidity risk. Additionally, it is shown that the emergence of COVID-19 brings significant changes to company autonomy and their financial performance, the COVID-19 pandemic has negatively influenced corporate risk through restrictions, economic uncertainty, and the amplification of risks. These research results are crucial for practitioners by the necessity of integrating ESG criteria into the risk assessment process and decision-making. Furthermore, concerning policy decision-makers, they help promote sustainability and a responsible approach. Therefore, ESG factors can impact companies' financial performance and influence how they are perceived by investors. By understanding and correctly evaluating these ESG factors, one can identify and manage risks more efficiently, achieve better long-term returns, make appropriate decisions, and promote sustainability in the business environment.

Related-party transactions and CEO foreign experience: Evidence from China

Chinese CEOs with foreign experience tend to engage less in related-party transactions (RPTs). This result holds across various analyses, including firm-fixed effects model estimations, matching on firm and CEO characteristics, additional controls, and instrumental variable regressions. The effect of CEO foreign experience is pronounced for non-state-controlled and non–politically connected firms. The effect is weaker for firms with independent boards and foreign shareholders. Moreover, CEOs exposed to more developed institutional environments tend to reduce RPTs more. Collectively, our findings indicate that CEO foreign experience can enhance corporate governance in emerging markets.

Exploring the nexus between CEO characteristics and the value of excess cash holdings through the lens of the resource-based view theory

Purpose This study aims to examine the relationship between CEO characteristics and the value of excess cash holdings from the perspective of resource-based view (RBV) theory in the context of Malaysia. Design/methodology/approach The analyses were made using ordinary least squares across 173 non-financial firms listed in Bursa Malaysia over the period of 2015–2021. The authors address potential endogeneity through the generalized method of moments. The results are also robust to alternative measures of excess cash holdings. Findings The results showed that female CEOs and CEOs’ educational level are significantly positively related to the value of excess cash holdings. In contrast, CEO tenure and CEO age negatively affect a firm’s excess cash valuation. The results are robust to measurement error and endogeneity issues. Practical implications The empirical results have useful policy implications. For practitioners, firms are recommended to prioritize the selection of female CEOs and CEOs with high education levels within their top management, as this initiative can result in improved value associated with excess cash holdings. In addition, policymakers are recommended to guide programs that attempt to improve educational attainment and gender diversity in business leadership. This study also provides investors with insightful information about the possible relationship between CEO traits and company performance, especially with regard to measures for managing surplus capital. Originality/value To the best of the authors’ knowledge, this study is the first to explore the role of CEO characteristics in the value of excess cash holdings based on the RBV theory.

A bibliometric analysis of evolving trends in CEO characteristics and financial performance research

A bibliometric analysis of evolving trends in CEO characteristics and financial performance research

The Influence of CEO Characteristics On Environmental, Social, & Governance (ESG) Strategies In Non-Financial Sector Companies Listed On The Indonesian Stock Ex-change (IDX)

Global issues such as climate change, social injustice, and corporate misconduct have driven the emergence of the Environmental, Social, & Governance (ESG) concept as the foundation of business and investment strategies. While Indonesia has been a pioneer in ESG bond issuance, further steps are still needed to support national policies and ensure alignment with ASEAN and G20 goals in supporting sustainable finance. This study aims to determine the effect of CEO characteristics, namely Gender and Education, on the Environmental, Social, & Governance (ESG) of companies listed on the Indonesia Stock Exchange (IDX). The literature shows that Gender, Education, and CEO Experienxe affect the company's funding policy and capital structure, but the impact on ESG implementation is unclear. This study used a sample of 365 with a total of 73 companies. The data processing method used is panel linear regression analysis using RStudio software. The results showed that CEO gender has an insignificant positive effect, CEO education has a significant positive effect, and CEO experience has a significant negative effect on the ESG strategy score. The results of the study are expected to help companies in making policies to improve ESG and help investors in choosing ESG companies.

The relationship between intellectual capital efficiency and firms’ dividend policy: Do CEO characteristics matter?

The financial challenges facing the Jordanian economy require careful attention and strategic responses. Addressing these challenges may necessitate increased investment. This study explores the relationship between intellectual capital efficiency and firms’ dividend policies and the potential impact of CEO characteristics on this relationship. An analysis was based on data from 90 Jordanian service and manufacturing companies from 2015 to 2019. The study employs the value-added intellectual capital coefficient (VAIC) to measure intellectual capital efficiency and uses the dividend payout ratio to represent dividend policy. The findings indicate a positive relationship between VAIC and dividend policy, suggesting that companies with higher intellectual capital efficiency tend to distribute higher dividends. However, CEO characteristics, such as age, tenure, and educational background, do not significantly affect this relationship. These results imply that strong corporate governance mechanisms are likely in place, ensuring effective decision-making processes and protecting stakeholders’ interests. By focusing on intellectual capital, firms can enhance their operational performance and attractiveness to investors, indirectly supporting economic stability.