CEO Characteristics and Firm Performance: Evidence from Tourism and Financial Firms Listed on Botswana Stock Exchange

Do Ceo Characteristics Really Matter for Firm Performance? Evidence From Indonesia

“…ROA is a profitability ratio that proxies the company's ability to invest equity in the company's total assets in order to generate profits (Llorens et al, 2017). ROA was chosen as a proxy for firm performance in this research because ROA is a proxy that is generally used to measure firm performance (Mbekomize et al, 2021;Saidu, 2019;Saleh et al, 2020). ROA in this study is measured by dividing Net Income by Total Assets.…”

“…However, previous studies that investigate the influence of CEO tenure on firm performance are still contradictory. Several previous studies found that CEO tenure had a positive influence on a firm performance (Mbekomize et al, 2021;Saleh et al, 2020;Vintila et al, 2015), and some also found a negative effect (Kaur & Singh, 2019;Naseem et al, 2019).…”

“…As with tenure, numerous previous studies investigating the influence of CEO gender on firm performance are still contradictory. Several previous studies found that CEO gender has a positive influence on firm performance (Naseem et al, 2019;Setiawan & Gestanti, 2022), while others found a negative influence (Faccio et al, 2016;Kaur & Singh, 2019;Mbekomize et al, 2021)and also has no effect (Vintila et al, 2015).…”

“…Tenure of office is often related to the experience a CEO has, whereas CEOs who serve longer often has better experience and relationship with employees (Kaur & Singh, 2019). A CEO with a long tenure is seen as having a positive impact on the company, because the longer the CEO serves, the more experience he tends to have (Mbekomize et al, 2021;Peni, 2012).According to Price Waterhouse Cooper (PWC) survey data, 95% of companies in Indonesia are family companies. This indicates that CEO position in an Indonesian company will most likely be overseen by the founding family of the company and is very difficult for an outsider to oversee it.…”

“…This indicates that tenure, which is one of the important CEO characteristics, is predicted to be able to influence firm performance, namely; through making the right strategic decisions. Tenure of office is related to the experience the CEO has in managing the company, so the length of time the CEO serve is often considered to have a positive impact on the company (Mbekomize et al, 2021;Peni, 2012). Boling et al (2015) argue that longer tenure will help CEOs acquire the abilities and knowledge to manage the company more effectively.…”