CEO characteristics and bank performance: Case of Vietnamese commercial banks

Pham, Nam Hai

doi:10.1080/23322039.2022.2162687

Cited by 10 publications

(15 citation statements)

References 34 publications

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“…These advantages make them likely to generate better performance than younger CEOs. This result supports the prior studies of Cheng et al (2010), Peni (2014), Naseem et al (2020), Rahman and Chen (2023) and Pham (2023). However, CEO age was also found to have a significantly negative association with Tobin’s Q measures of market-based firm performance.…”

Section: Resultssupporting

confidence: 89%

“…Prior studies have documented that women's participation on boards improves firm performance (Dezso and Ross, 2012;Carter et al, 2003;Campbell and Minguez-Vera, 2008;Francoeur et al, 2008;Liu et al, 2014;Terjesen et al, 2015;Ayadi et al, 2015;Perryman et al, 2016;Bennouri et al, 2018;Naseem et al, 2020;Ricotta et al, 2021). Other studies in Southeast Asian countries have shown that CEO gender is negatively associated with firm performance in Indonesia (Ahmad et al, 2022), Singapore (Ahmad et al, 2022), Malaysia (Razali et al, 2022) and Vietnam (Pham, 2023). Meanwhile, Buchdadi et al (2023) find that female CEOs are positively associated with bank performance in Indonesia.…”

Section: Hypotheses Developmentmentioning

confidence: 96%

“…Besides the positive and negative effects, researchers have also found no significant relationship between CEO age and firm performance (Nelson, 2005;Liu and Jiang, 2020;Ricotta et al, 2021). Other studies in Southeast Asian countries find that CEO age is negatively associated with firm performance in Malaysia and Singapore (Ahmad et al, 2022), positively associated with firm performance in Vietnam (Pham, 2023) and not associated with firm performance in Indonesia (Ahmad et al, 2022) and Malaysia (Razali et al, 2021). Based on these mixed empirical results about the influence of CEO age on firm performance, we propose the second hypothesis as follows:…”

Section: Hypotheses Developmentmentioning

confidence: 98%

“…The CEO characteristics-firm performance nexus has been studied extensively with mixed results. Various CEO characteristics have been explored, including gender diversity (Bennouri et al, 2018;Jadiyappa et al, 2019;Ricotta et al, 2021;Buchdadi et al, 2023), age (Belenzon et al, 2019;Liu and Jiang, 2020;Ricotta et al, 2021;Ahmad et al, 2022), tenure (Suherman et al, 2021b;Pham, 2023), educational background (Wang et al, 2016;Bennouri et al, 2018;Naseem et al, 2020;Ahmad et al, 2022), nationality (Badru and Raji, 2016;Kaur and Singh, 2018;Chuah and Foong, 2019;Ahmad et al, 2022), duality (Ahmadi et al, 2018;Kaur and Singh, 2018;Pham, 2023), ownership (Saidu, 2019;Siregar et al, 2023) and origin (Saidu, 2019;Siregar et al, 2023). CEOs are research targets because they are a company's most powerful and visible executives (Peni, 2014).…”

Section: Introductionmentioning

confidence: 99%

“…CEO gender has been shown to be positively associated with firm performance (Ahmad et al , 2022), bank performance (Buchdadi et al , 2023), firm cash holdings (Suherman et al , 2021b), financial restatements (Altarawneh et al , 2020) and environmental performance of SMEs (Tran and Pham, 2020). CEO age has been found to be both negatively associated with firm performance (Ahmad et al , 2022) and positively associated with firm performance (Pham, 2023) and positively associated with SDR disclosure (Lim-U-Sanno, 2021). CEO education is positively associated with SDR disclosure (Lim-U-Sanno, 2021), capital structure (Chua et al , 2022), investing policy (Setiawan and Gestanti, 2022), bank environmental performance (Sumarta et al , 2021) and SME environmental performance (Tran and Pham, 2020).…”

Section: Introductionmentioning

confidence: 99%

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CEO characteristics and firm performance: evidence from a Southeast Asian country

Suherman

Mahfirah

Usman

et al. 2023

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Purpose The purpose of this study was to investigate how chief executive officer (CEO) characteristics, including age, education, nationality and particularly gender, influence firm performance in a developing Southeast Asian Country (Indonesia). Design/methodology/approach The study uses balanced firm-level panel data for 203 nonfinancial companies listed on the Indonesia Stock Exchange from 2010 to 2020. Return on assets, return on equity and Tobin’s Q were used to measure firm performance. The data were analyzed using panel data regression analysis, including a fixed effects model with clustered standard errors. Findings The results indicate that female CEOs, education and nationality enhance firm performance, while CEO age can either improve or reduce firm performance. Numerous robustness checks were performed; the results were consistent with those in the main analysis. Research limitations/implications Individual characteristics should be considered when appointing CEOs. Some CEO characteristics enhance firm performance. Female CEOs bring new perspectives, while older CEOs’ longer experience adds a competitive advantage. More educated CEOs have a better ability to deal with challenging intellectual activities, and CEOs from foreign countries better understand international market regulations. However, some characteristics may reduce firm performance, for example, older CEOs are more conservative and unable to adapt to changing business environments. Originality/value This study contributes to corporate governance studies by synthesizing CEO characteristics and investigating their relationship with firm performance. Moreover, it emphasizes that developing countries such as Indonesia have different economic, legal, social and cultural environments than developed countries, especially Western countries.

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