The Role Of CEO Characteristics In Firm Innovative Performance: A Comparative Analysis Of EU Countries And Russia

Ricotta, Fernanda; Golikova, Victoria; Kuznetsov, Boris

doi:10.2139/ssrn.3925412

Cited by 2 publications

(7 citation statements)

References 47 publications

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“…In general, these suggest that firms with female CEOs tend to outperform firms with male CEOs. These results are consistent with Dezso and Ross (2012), Bennouri et al (2018), Naseem et al (2020), Ricotta et al (2021) and Buchdadi et al (2023). Bennouri et al (2018) argued that female executives bring new insights, which may lead to better consideration in decision-making to solve problems compared to their male peers.…”

Section: Discussionsupporting

confidence: 89%

“…For example, Kaur and Singh (2018) stated that CEO gender did not have an important influence on firm performance. 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).…”

Section: Hypotheses Developmentmentioning

confidence: 97%

“…CEO age is negatively associated with company performance, which suggests that firms with younger CEOs outperform firms with older CEOs (Nguyen et al, 2018;Belenzon et al, 2019). 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).…”

Section: Hypotheses Developmentmentioning

confidence: 99%

“…CEO age might also be treated as a proxy for accumulated industry and professional expertise, which could help firms to identify and seize new market opportunities and trends (Ricotta et al , 2021). Older CEOs may have more social and political linkages to related institutions and societies (Ricotta et al , 2021), as well as more experience and greater risk management and people skills, which help to increase firm performance (Kuo et al , 2015). Kuo et al (2015) added that older CEOs generate higher earnings and greater financing capacity for firms with good performance or high leverage.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…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%

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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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