Impact of CEO attributes on corporate reputation, financial performance, and corporate sustainable growth: evidence from India

Abstract

This article investigates the impact of CEO attributes on corporate reputation, financial performance, and corporate sustainable growth in India. Using static panel data methodology for a sample of NSE listed leading 138 non-financial companies over the time-frame 2011 to 2018, we find that CEO remuneration and tenure maintains significant positive associations with corporate reputation, while duality and CEO busyness are found to be associated with corporate reputation negatively. The results also show that female CEOs and CEO remuneration are associated with corporate financial performance positively, whereas CEO busyness, as expected, holds a significant negative relationship with corporate financial performance. Moreover, the results demonstrate that CEO age is associated with corporate sustainable growth negatively, while tenure appears to have a significant and positive association with corporate sustainable growth. The results are robust to various tests and suggest that in the Indian context, demographic and job-specific attributes of CEOs exert significant influence on corporate reputation, financial performance, and corporate sustainable growth. The empirical findings would provide a basis for the shareholders and companies to identify areas of consideration when appointing CEOs and determining their roles and responsibilities.

Impact of Ceo Charisma on Financial Performance: Evidence From Indonesian Firms

“…One school of thought believes that an older CEO will be more careful and more knowledgeable in managing their firms (Putri & Rusmanto, 2019;Sitthipongpanich & Polsiri, 2015). The other school of thought believe that a younger CEO will be more ambitious in growing their careers and more willing to choose riskier decisions, causing in higher firm performance (Amran et al, 2014;Li et al, 2017;Mukherjee & Sen, 2022;Serfling, 2014). However that finding agreed with the proposition of Hambrick and Mason (1984) regarding upper echelons theory that stated that firms with younger managers will generate higher growth and variability than those with older managers.…”

“…Some experts believe that older CEOs will have a higher understanding of their industry thus will giving higher returns, while the others believe younger CEOs will be more ambitious in looking for better opportunities (Mukherjee & Sen, 2022)…”

Los MBA en México y su aporte a la formación en reputación corporativa

“…Las crisis que se han presentado han acelerado la incorporación de la reputación a la agenda de la alta dirección pues hicieron ver a los empresarios que una reputación mal gestionada puede poner en serios riesgos la continuidad empresarial (Carreras et al, 2013;Rodríguez-Egas y Fernández-Muñoz, 2022). La reputación no es algo que dependa de la fortuna (Watson y Kitchen, 2008;Betancourt y Barberá, 2022), tiene que ver con el liderazgo, la gestión y las operaciones organizacionales (Mukherjee y Sen, 2022).…”

“…Existe una relación bidireccional entre la Reputación Corporativa y el Gobierno Corporativo, así como entre la reputación personal de los CEO y el Gobierno corporativo (Garicano, 2011;Guang et al, 2021;Edi y Kho, 2021;Ghuslan et al, 2021;Mukherjee y Sen, 2022). El Consejo de Administración debe ocuparse de la Reputación Corporativa de la empresa y, por otra parte, una de las dimensiones de las que depende una buena Reputación Corporativa es un buen Gobierno Corporativo.…”

Effects of Corporate Governance on Bank Risk Taking

“…Similarly, Yeoh and Hooy (2020) find that CEO age has an inverse u-shaped relationship, such that risk-taking increases with CEO age but reduces beyond a certain age threshold. Mukherjee and Sen (2022) examined the impact of CEO attributes on corporate financial performance, and the results showed an insignificant relationship between CEO age and financial performance. Based on empirical findings, the following hypothesis is formed: H6: There is significant effect of CEO age on risk taking.…”