CEO Characteristics and Valuation of the Organization: A Quantile Regression Analysis

Abstract

This study examines the effects of three highly-visible CEO characteristics on a valuation of the organization. Using a sample for Chinese firms over the period of 2007-2016, we find that CEO age is consistently related with lower organizations' valuation. CEO tenure is also related with lower valuation, but more significantly so in the higher quantiles of organizations'

Moderating Effect of Independent Directors on the Relationship between Chief Executive Officers Characteristics and Performance of Listed Deposit Money Banks in Nigeria

“…Also, longer tenure of the CEOs enhances their accountability and inculcate a sense of ownership in them, which helps them in aligning Gupta & Mahakud, 2020). However, the finding is consistent with the studies by Mansoor, Ellahi, Khan, andRahman (2017), andPeni (2014); who found that CEOs with long tenure have significant positive effect on firms' performance than short-tenured CEOs while it contradicts tudies by Nazir, Nazir, and Khan (2018), Nguyen, Miloud, and Zhao (2017), and Barka and Legendre (2016) who found that CEO tenure has significant negative effect on firms' performance.…”

“…Younger CEOs are also described as making more and riskier financing decisions (Serfling, 2014). Therefore, studies by Meltschakow (2020), Kokeno and Muturi (2016), Yasser, Al-Mamun, and Suriya, (2014) found that CEO age has significant positive effect on firms' performance while Studies by Nguyen, Miloud, and Zhao (2017), Nazir, Nazir, andKhan (2018), andDiks (2016), found that CEO age has significant negative effect on firms' performance. Studides by Razali, Azmi, Hwang, and Lunyai (2022), Poole (2016) and Cornet, Marcus, Saunders and Tehranian (2012) found that CEO Age has nonsignificant effect on the firm performance.…”

“…In fact, a debate has recently started on the maximum tenure that the CEOs should stay in office; particularly the usefulness of limits to CEO terms (Limbach et al, 2015). Therefore, studies by Mansoor, Ellahi, Khan, and Rahman (2017), Peni (2014);Peterson, Galvin, and Lange (2012) found that CEOs with long tenure have significant positive effect on firms' performance than short-tenured CEOs while Studies by Nazir, Nazir, and Khan (2018), Nguyen, Miloud, and Zhao (2017), Diks (2016), Singla (2016) and Barka & Legendre (2016) found that CEO tenure has significant negative effect on firms' performance. Moreover, studies by Kusumasari (2018); Serra, Tres, and Ferreira (2016) found that CEOs tenure does not significantly affect firms' performance.…”

The Role Of Women Chief Executive Officers On Tax Avoidance Decisions In Islamic Stock Index

“…In addition, a CEO greatly influences the company's reputation (Chiu, Li, and Kao 2022). Therefore, this position must be filled by selected people (Nazir et al 2018). The CEO plays an active role in decision-making and acts as a point of communication between the board of directors and shareholders.…”

“…The CEO plays an active role in decision-making and acts as a point of communication between the board of directors and shareholders. Leadership is a fundamental ability that must be owned by every CEO, even for the manager class (Nazir et al 2018). This leadership ability is closely related to the CEO's position as the company's leader (Chiu et al 2021).…”