CEOs’ Characteristics and Firm Performance: A Study of Indian Firms

Abstract

The centre of interest of this research article is the association between chief executive officer (CEO) characteristics and firm performance. Employing a sample of Nifty 500 firms, the support found recommends that demographic and job-related characteristics may be related with the firm's financial performance. We consider CEO gender, duality, nationality, remuneration and education level as CEO characteristics and we employ return on assets (ROA) as a representative for firm performance. This study widens the understanding of the important function played by the CEO and provides better insight into CEO-specific variables. Specifically, the reported findings specify a positive relationship between CEO remuneration and firm performance, thus indicating that compensation acts as a good inducement for executives to yield finer firm performance while CEO nationality appears to inhibit it, steering foreign directors to a minority spot. This implies that remuneration should be more thoughtfully attached to performance, so that proficient CEOs are not lured by more tempted compensation elsewhere and the decision to engage foreign nationals to company boards must be based on norms other than the firm's future financial performance.

Does corporate governance affect CEO compensation in Indian manufacturing firms?

“…To address scams, corruptions, and ineffective corporate governance, the Companies Act 2013 in India has streamlined the corporate structures and processes (Kaur & Singh, 2018). The reason for streamlining corporate governance structure is to bring transparency, efficiency, reduce information asymmetry, and to minimize inequity in prevailing compensation of CEOs (Baker, Bivens, & Schieder, 2019).…”

Impact of Managerial Ability and Power on CEOs Compensation

“…The study also focused on the cross-holding of directorships in family business groups and found the positive association of cross-holdings of executive directors with the financial performance of the firm. Kaur and Singh (2018) found a positive association between CEO remuneration and firm performance, and study also found the CEO nationality has its impact on this relationship. Kohli and Gill (2019) examine the relationship between corporate strategy and CEO compensation in the case of family firms in India by using a sample of 106 listed pharmaceutical companies in India.…”

The relationship between CEO personal traits and technology companies’ performance at different stages of the life cycle

“…В исследованиях [Gerhart, Milkovich, 1990;Müller et al, 2014;Peni, 2014;Kaur, Singh, 2018] ROA рассматривается как определяющий фактор в измерении успешности и эффективности компании. В [Peni, 2014] также дополнительно описывается Q Тобина как отображение переоцененности или недооцененности компании.…”